Functions of Management
Functions of Management
Directing
Directing refers to a process or technique of instructing, guiding,
inspiring, counselling, overseeing and leading people towards the
accomplishment of organizational goals. It is a continuous managerial
process that goes on throughout the life of the organization. Main
characteristics of Directing are as follows:
1. Initiates Action
4. Continuous Activity
6. Human Factor
Importance of Directing
1. Initiates Action
3. Motivates Employees
4. Provides Stability
2. Harmony of Objectives
3. Unity of Command
7. Leadership
8. Follow Through
Meaning of Direction
Directing can be defined as that function of management, which helps
in guiding and leading people to work in such a manner so as to perform
efficiently and effectively for the attainment of organizational
objectives. Directing is the managerial function, which initiates
organized action.
3] Motivating Subordinates
4] Providing Leadership
What is Controlling?
Controlling consists of verifying whether everything occurs in confirmities with the plans adopted,
instructions issued and principles established. Controlling ensures that there is effective and efficient
utilization of organizational resources so as to achieve the planned goals. Controlling measures the
deviation of actual performance from the standard performance, discovers the causes of such deviations
and helps in taking corrective actions
According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual
performance against the standards or plans with a view to ensure adequate progress and also recording
such experience as is gained as a contribution to possible future needs.”
According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a
planned action, so should a business manager continually take reading to assure himself that his
enterprise is on right course.”
1. It facilitates co-ordination
2. It helps in planning
1. Controlling is an end function- A function which comes once the performances are made in
confirmities with plans.
2. Controlling is a pervasive function- which means it is performed by managers at all levels and
in all type of concerns.
3. Controlling is forward looking- because effective control is not possible without past being
controlled. Controlling always look to future so that follow-up can be made whenever required.
4. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes
have to be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two inseperable functions of
management. Without planning, controlling is a meaningless exercise and without controlling,
planning is useless. Planning presupposes controlling and controlling succeeds planning.
Process of Controlling
Controlling as a management function involves following steps:
1. Establishment of standards- Standards are the plans or the targets which have to be achieved
in the course of business function. They can also be called as the criterions for judging the
performance. Standards generally are classified into two-
a. Measurable or tangible - Those standards which can be measured and expressed are
called as measurable standards. They can be in form of cost, output, expenditure, time,
profit, etc.
b. Non-measurable or intangible- There are standards which cannot be measured
monetarily. For example- performance of a manager, deviation of workers, their attitudes
towards a concern. These are called as intangible standards.
It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports.
3. Comparison of actual and standard performance- Comparison of actual performance with the
planned targets is very important. Deviation can be defined as the gap between actual
performance and the planned targets. The manager has to find out two things here- extent of
deviation and cause of deviation. Extent of deviation means that the manager has to find out
whether the deviation is positive or negative or whether the actual performance is in conformity
with the planned performance. The managers have to exercise control by exception. He has to
find out those deviations which are critical and important for business. Minor deviations have to
be ignored. Major deviations like replacement of machinery, appointment of workers, quality of
raw material, rate of profits, etc. should be looked upon consciously. Therefore it is said, “ If a
manager controls everything, he ends up controlling nothing.” For example, if stationery charges
increase by a minor 5 to 10%, it can be called as a minor deviation. On the other hand, if monthly
production decreases continuously, it is called as major deviation.
Once the deviation is identified, a manager has to think about various cause which has led to
deviation. The causes can be-
a. Erroneous planning,
b. Co-ordination loosens,
c. Implementation of plans is defective, and
d. Supervision and communication is ineffective, etc.
4. Taking remedial actions- Once the causes and extent of deviations are known, the manager
has to detect those errors and take remedial measures for it. There are two alternatives here-
a. Taking corrective measures for deviations which have occurred; and
b. After taking the corrective measures, if the actual performance is not in conformity with
plans, the manager can revise the targets. It is here the controlling process comes to an
end. Follow up is an important step because it is only through taking corrective
measures, a manager can exercise controlling.