Most important functions of management

The elements of management process are known as functions of management. However various authors have classified these differently. Henry Fayol classified the major functions of management into five:

1. Planning
2. Organizing
3. Commanding
4. Coordinating and
5. Controlling

Luther Gullick has given the word ‘POSDCORB’ which stands for

1. Planning (P)
2. Organizing (O)
3. Staffing (S)
4. Directing (D)
5. Controlling (CO)
6. Reporting (R) and
7. Budgeting(B)

Koontz and O’Donnell have suggested

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

The important functions of management is explained below:

Planning:

• The first function of the Manager is planning. It is also the foremost and the essential function. Planning equips the Manager mentally to meet his tasks.
• To plan for the organization the Manager should first understand the culture and creed of the Organization, what it stands for what are its objectives.
• The Manager should study the resources available within the organization, as also the strength and weakness of the Organization.
• In the next phase the Manager should perceive the environment outside the organization and assess correctly the opportunities it provides and the challenges it poses.
• Planning involves selecting missions and objectives and the actions to achieve them.
• It also consists of policies, procedures, methods, budgets, strategy and programmes that are needed to achieve the goals set. Decision-making is the most important and integral part of planning

Organizing:

• Organizing is the process of arranging and allocating work, authority, and resources among an organization’s members so that they can achieve the organization’s goals.
• Organizing is to give a proper shape to the structure that should execute the plan smoothly to achieve its success.
• It is the function of grouping together different parts forming an enterprise to carry out defined operations.
• Various activities to fulfill the goals have to be grouped and these are to be assigned to people in-groups or departments.
• The authority, responsibility, accountability needed at each level to execute the plan is to be defined and delegated.

Staffing:

• The staffing function involves identifying/selecting the right person for executing each task planned.
• The staffing function includes all the jobs connected with recruitment, selection, training, placement, remuneration appraisal, promotion, career planning of the human resources in the organization to accomplish the task effectively and efficiently

Directing:

• It is the duty of the Manager to guide his subordinates by training coaching, instructing and indicating what to do, when to do and how to do.
• Thereafter closely monitor the team at work to ensure high standard and efficiency.
• Function of Directing embraces the following activities:

1. orders and instructions
2. supervising (overseeing) people at work
3. motivation, i.e. creating the willingness to work for certain objectives,
4. communication, i.e. establishing understanding with employees regarding plans and their implementation, and
5. leadership or influencing the behavior of employees

Controlling:

• Controlling is the process of ensuring that actual activities conform to the planned activities
• The process of controlling involves the following steps:

1. establishing standards for measuring work performance
2. measurement of actual performance and comparing it with the standards
3. finding variances between the two and see the reasons therefore
4. taking corrective action for rectifying deviations so as to ensure attainment of objectives
5. It helps the manager to keep the organization on track