Functions of Management

Management is a broad term that encompasses a variety of skills and functions. It involves the coordination
and oversight of activities to ensure that goals are met in an efficient and effective manner.

Planning : Planning is the most important of the ten functions of management. It involves setting objectives
and determining the best way to achieve them. Planning requires the manager to consider resources, time,
and other constraints. This includes creating strategies, setting goals, and developing action plans.

Organizing: Organizing is the process of assigning tasks, grouping them into departments, and allocating
resources. It also involves developing policies and procedures, setting up systems, and assigning roles and
responsibilities.

Staffing : Staffing involves recruiting, selecting, and training the right people for the job. It is important for
managers to ensure that their team is composed of employees with the right skills and knowledge to achieve
the organization’s goals.

Leading : Leadership is the ability to motivate and inspire people to achieve their goals. It involves setting
an example, providing direction, and creating a positive work environment.

Controlling: Controlling is the process of monitoring progress and ensuring that goals are met. It involves
setting standards, measuring performance, and taking corrective action when needed.

Coordinating: Coordinating is the process of ensuring that activities are properly aligned and integrated. It
involves communicating and collaborating with different departments and teams.

Reporting: Reporting is the process of collecting and presenting data to management. It involves analyzing
trends, identifying problems, and making recommendations.

Budgeting: Budgeting is the process of allocating resources to achieve organizational goals. It involves
setting targets, forecasting revenues and expenses, and monitoring spending.

Problem Solving: Problem solving is the process of identifying and resolving issues. It involves analyzing
the problem, developing solutions, and implementing the best one.

Decision Making: Decision making is the process of choosing the best course of action. It involves
gathering information, evaluating options, and making a decision that is in the best interest of the
organization.

Fourteen principles of management : Henry Fayol, also known as the Father of Modern
Management Theory, gave a new perception on the concept of management. He introduced a general theory
that can be applied to all levels of management and every department. He envisioned maximising
managerial efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the
internal activities of an organisation.
1. Division of Work : Henri believed that segregating work in the workforce amongst the workers will
enhance the quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for both the
managerial as well as a technical work level.

2. Authority and Responsibility: These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible for the work done under their
guidance or leadership.
3. Discipline: Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy and
comprehensive. Employees’ good behaviour also helps them smoothly build and progress in their
professional careers.

4. Unity of Command: This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction: Whoever is engaged in the same activity should have a unified goal. This means all
the people working in a company should have one goal and motive which will make the work easier and
achieve the set goal easily.

6. Subordination of Individual Interest: This indicates a company should work united towards the interest
of a company rather than personal interest. Be subordinate to the purposes of an organisation. This refers to
the whole chain of command in a company.

7. Remuneration: This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have put forth.

8. Centralization: In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organisation. Henri Fayol stressed on the
point that there should be a balance between the hierarchy and division of power.

9. Scalar Chain: Fayol, on this principle, highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also they should be able to
contact any, if needed.

10. Order: A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.

11. Equity: All employees should be treated equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination.

12. Stability: An employee delivers the best if they feel secure in their job. It is the duty of the management
to offer job security to their employees.

13. Initiative: The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps: It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.