MANAGEMENT

FUNCTIONS
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 DEFINITION OF MANAGEMENT
"Management is a distinct process consisting of planning, organizing,
activating and controlling to determine and accomplish the objectives by the
use of people and resources."- G.R. Terry

"To manage is to forecast and plan, to organise, to

command, to co-ordinate and to control."
- Henry Fayol

"Management is simply the process of decision making and control over

the action of human beings for the express purpose of attaining pre-
determined goals." 2

- Stanley Vance
5 FUNCTIONS OF MANAGEMENT
 Koontz and O'Donnell explained five functions of management.
 They have become widely accepted functions of management everywhere.
They are:

 Planning.
 Organizing.
 Staffing.
 Directing.
 Controlling.
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5 FUNCTIONS OF MANAGEMENT

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PLANNING

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 PLANNING IS DECIDING IN
ADVANCE
 what to do, how to do.
 why to do.
 where to do.
 who will be responsible for doing is planning.

Definition
"Planning bridges the gap from where we are to where we want to go. It makes
it possible for things to occur which would not otherwise happen"
- Koontz and O'Donnel.
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 IMPORTANCE OF PLANNING
 Planning provides directions.
 Planning reduces the risks of uncertainty
 Planning reduces overlapping and wasteful activities.
 Planning promotes innovative ideas.
 Planning facilitates decision making.
 Planning establishes standards for controlling.
Features of planning

 Planning focuses on achieving objectives.

 Planning is a primary function of management.
 Planning is pervasive.
 Planning is continuous.
 Planning is futuristic.
 Planning involves decision making
 Planning is a mental exercise.

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Planning Process

Setting objectives: Objectives may be set for the entire organization and each
department or unit within the organization.
Developing premises: Planning is concerned with the future which is
uncertain
and every planner is using conjuncture about what might happen in future.

Identifying alternative courses of action: Once objectives are set, assumptions

are made. Then the next step would be to act upon them.

Evaluating alternative courses: The next step is to weigh the pros and cons of
each alternative.

Selecting an alternative: This is the real point of decision making. The best plan
has to be adopted and implemented.

Implement the plan: This is concerned with putting the plan into action.
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Follow-up action: Monitoring the plans are equally important to ensure that
objectives are achieved.
ORGANIZING

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 Division of work into functions and sub-functions, grouping of activities that are
closely related in their nature, assigning of duties and responsibilities to the
employees and finally delegation of authority and power to each employee or the
group to discharge their duties accordingly are the processes come under the function
of management organizing.

Definition
"Organization is the process of identifying and grouping of
the works to be performed, defining and delegating
responsibility and authority and establishing relationships for
the purpose of enabling people to work most efficiently".
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- Louis A. Allen
 Importance of Organizing
 Organizing helps Organizations to reap the benefit of specialization.
 Organizing provides for Optimum utilization of resources.
 Organizing helps in Effective administration.
 Organizing channels for Expansion and growth.
 Organizing achieves co-ordination among different departments.
 Organizing creates scope for new change.

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 Organizing Process
Division of work: The first process of Organizing includes identification and
division of work which shall be done in accordance with the plans that are
determined previously.

Departmentation: once the work of identifying and dividing the work has been
done those are similar are to be grouped.

Linking departments: When the process of departmentation was completed,

linking of departments has to be done so that those departments operate in a co-
ordinated manner which gives a shape to overall organization structure.

Assigning Duties: On completion of departmentation process assigning duties i.e.

defining authority and responsibility to the employees on the basis of their skills
and capabilities has to be done, which in consequence magnifies efficiency with
regard to their work.

Defining hierarchal structure: Each employee should also know from whom
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has to take orders and to whom he is accountable/responsible.
DIRECTING

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 Directing is nothing but guiding and leading the people in an
organization. It is not just giving instructions by a superior to the sub-
ordinates but also is a process of supervising, guiding and motivating the
latter to achieve the organizational goals.

Definition
"Activating deals with the steps a manager takes to get
sub- ordinates and others to carry out plans".
- Newman and Warren.

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 IMPORTANCE OF
DIRECTING
 Direction initiates actions to get the desired results in an organisation.

 Direction attempts to get maximum out of employees by identifying their

capabilities.

 Direction is essential to keep the elements like Supervision, Motivation,

Leadership and Communication effective.

 It ensures that every employee work for organisational goals.

 Coping up with the changes in the Organisation is possible through effective

direction.

 Stability and balance can be achieved through directing.

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STAFFING

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 In the simplest terms, staffing in management is
‘putting people to jobs’.
Definition
"Staffing is the function by which managers build an organisation
through the recruitment, selection, and development of individuals as capable
employees"
- McFarland
Importance of Staffing
 Filling the Organisational positions.
 Developing competencies to challenges.
 Retaining personnel – professionalism.
 Optimum utilisation of the human resources.
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 STAFFING PROCESS
Analyzing manpower requirements: it is making an analysis of work and
estimating the manpower requirement to accomplish the same.

Recruitment: it is identifying and attracting capable applicants for employment.

It ends with the submission of applications by the aspirants.

Selection: it is choosing the fit candidates from the applications received in

the process of recruitment.

Placement: this may be on probation and on successfully completion of the same

the candidate may be offered permanent employment.

Training and development: it is concerned with imparting and developing

specific skills for a particular purpose.

Performance appraisal: systematic evaluation of personnel by superiors or

others familiar with their performance so as to rank employees to ascertain
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their eligibility for promotions.

CONTROLLING

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 It is the process that ensures whether the resources are obtained and used
efficiently in achieving the organizational objectives

Definition
"Controlling is determining what is being accomplished - that is,
evaluating performance and, if necessary, applying corrective measures so
that performance takes place according to plans".
- Terry and Franklin.

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 SUMMARY
 We have defined management as a process to achieve
organizational goals. The management process consists
of four primary functions that managers must
perform: planning, organizing, leading, and
controlling. It is important to realize that the
management process is not always linear.

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