Functions of Management: Planning Staffing Organizing Controlling Directing

Planning
Staffing
Organizing
Controlling
Directing
Functions of
Management
Course Objectives
• List the Various Functions of Management
• Explain the Planning Function of Management
• Explain the Steps in Planning Function
• List the Characteristics of Planning
• Explain the Staffing Function of Management
• Explain the Steps involved in Staffing Process
• Explain the Steps in Manpower Planning
• Explain the Steps of Employee Selection Process
• Explain the Methods of Training
• Describe the Methods of Employee Remuneration
• Explain the Steps of Organizing Function Process
• Describe the Principles of Organizing
• List the Features of Controlling Function
• Explain the Steps of the Controlling Process
• List the Characteristics of Direction Function
Introduction
Look at five people working in Perseus Inc. as described below.
Gavin Smith Rachel Blake Leo Cooper Gloria Logan Kyle Watson
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Introduction
Hi, I am Gavin Smith. I am a member

of the Board of Directors at Perseus. I
am one of the people in the
organization who are responsible for
laying down the objectives and broad
policies of the organization. I also play
a part in preparing the strategic plans
and the preparation of department
budgets, procedures, schedules etc. I
am responsible for taking into
consideration available and
prospective human and physical
resources of the organization so as to
get effective co-ordination,
contribution and perfect adjustment.
Introduction
Hi, I am Rachel Blake. I work as a

Human Resources (HR) Manager at
Perseus Inc. I am responsible for the
managerial function of staffing which
involves manning the organization
structure through proper and effective
selection, appraisal and development
of the personnel to fill the roles
assigned to the employers/workforce. I
am responsible for motivating and
identifying the training and
development needs of the employees.

Introduction
Hello, I am Leo Cooper. I work as a

Project Head in the Operations
department at Perseus Inc. I am
responsible for the execution of the
plans of the organization in accordance
with the policies and directives of the
organization. I also take care of the
coordination of the activities within my
department. I am responsible for
classifying the authority as well as for
the co-ordination between authority
and responsibility.

Introduction
Hello, I am Gloria Logan. I work as a
Manager in the Operations department
at Perseus Inc. I am responsible for the
controlling function which includes
verifying whether everything occurs in
conformities with the plans adopted,
instructions issued and principles
established. I ensure that there is
effective and efficient utilization of
organizational resources so as to
achieve the planned goals. I am
responsible for measuring the
deviation of actual performance from
the standard performance, discovering
the causes of such deviations and help
in taking corrective actions.
Introduction
Hi, my name is Kyle Watson. I am a

supervisor at one of Perseus’ steel
manufacturing plants. I am responsible
for assigning of jobs and tasks to
various workers at the plant. I guide
and instruct the workers for day to day
activities and am responsible for the
quality as well as quantity of
production. I ensure that discipline is
maintained among the workers at the
plant and communicate workers’
problems, suggestions and
recommendatory actions to my
managers.

Introduction
So, you can see that all the five people, Gavin, Rachel, Leo, Howard and Kyle
help manage the functioning of Perseus’ business?
All the five of them perform managerial activities and functions to help in the
smooth running of Perseus’ day-to-day business activities.
Gavin Smith Rachel Blake Leo Cooper Gloria Logan Kyle Watson
However, they are different from each other. How do you think their
responsibilities differ from each other?
Introduction
Yes, each one has a different function to

perform and a different chain of command
that he controls; each one holds a different
amount of authority and enjoys a different
status in his managerial position at Perseus.
This difference between the three managerial

positions and its functions at Perseus is due to
the various ‘Functions of Management’.

Introduction
The term ‘Functions of Management’ refers to

a strict separation of the functions and the
kinds of work performed by various positions
in an organization.
The five key functions of management are:

Planning, Staffing, Organizing, Controlling and
Directing.

Introduction
Hence, to understand the management of any

organization, it is very important to
understand the different functions that are
performed by management and how they
contribute to the overall working of the
organization.
Let us learn about ‘Functions of Management’

in detail.

Objectives
Functions of Management
The following are the key Functions of Management:
Planning
Staffing
Directing
Organizing
Controlling

Objectives
Planning Function of Management
• ‘Planning’ means looking ahead and
chalking out future courses of action
to be followed.
• It is a preparatory step.
• It is a systematic activity which

determines when, how and who is
going to perform a specific job.
• Planning is a detailed program

regarding future courses of action.
• It is rightly said “Good planning means

half the job is done”.

• Therefore, planning takes into
consideration available and
prospective human and physical
resources of the organization so as to
get effective co-ordination,
contribution and perfect adjustment.
• It is the basic management function

which includes formulation of one or
more detailed plans to achieve
optimum balance of needs or
demands with the available resources.
• According to Urwick, “Planning is a

mental predisposition to do things in
orderly way, to think before acting
and to act in the light of facts rather
than guesses”.
• Planning is deciding the best
alternative among others to
perform different managerial
functions in order to achieve
predetermined goals.
• According to Koontz & O’Donell,

“Planning is deciding in advance
what to do, how to do and who
is to do it.
• Planning bridges the gap

between where we are to where
we want to go.
• It makes possible things to occur

which would not otherwise
occur”.
Objectives
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Steps in Planning Function
Planning function of management involves following steps:
Let us now look at each in detail.

Establishment of Objectives
1
• Establishment of Objectives:
o Planning requires a systematic approach.

o Planning starts with the setting of goals and objectives to be
achieved.
o Objectives provide a rationale for undertaking various activities
as well as indicate direction of efforts.
o Moreover, objectives focus the attention of managers on the
end results to be achieved.
o As a matter of fact, objectives provide nucleus to the planning
process.

Establishment of Objectives
Establishment of Objectives 1
• Establishment of Objectives:
o Planning requires a systematic approach.

o Planning starts with the setting of goals and objectives to be
achieved.
o Objectives provide a rationale for undertaking various activities
as well as indicate direction of efforts.
o Moreover, objectives focus the attention of managers on the
end results to be achieved.
o As a matter of fact, objectives provide nucleus to the planning
process.

Establishment of Planning Premises
2
• Establishment of Planning Premises:
o Planning premises are the assumptions about the likely shape of

events in future.
o They serve as a basis of planning.
o Establishment of planning premises is concerned with
determining where one tends to deviate from the actual plans
and causes of such deviations.
o It is to find out what obstacles lay in the way of business during
the course of operations.
o Planning premises may be internal or external.

Establishment of Planning Premises
Establishment of Planning Premises 2
• Establishment of Planning Premises:
o Planning premises are the assumptions about the likely shape of

events in future.
o They serve as a basis of planning.
o Establishment of planning premises is concerned with
determining where one tends to deviate from the actual plans
and causes of such deviations.
o It is to find out what obstacles lay in the way of business during
the course of operations.
o Planning premises may be internal or external.

Choice of Alternative Course of Action
3
• Choice of Alternative Course of Action:
o When forecast are available and premises are established, a

number of alternative course of actions have to be considered.
o For this purpose, each and every alternative will be evaluated by
weighing its pros and cons in the light of resources available and
requirements of the organization.
o The merits, demerits as well as the consequences of each
alternative must be examined before the choice is made.

Choice of Alternative Course of Action
Choice of Alternative Course of Action 3
• Choice of Alternative Course of Action:
o When forecast are available and premises are established, a

number of alternative course of actions have to be considered.
o For this purpose, each and every alternative will be evaluated by
weighing its pros and cons in the light of resources available and
requirements of the organization.
o The merits, demerits as well as the consequences of each
alternative must be examined before the choice is made.

Formulation of Derivative Plans
4
• Formulation of Derivative Plans:
o Derivative plans are the sub plans or secondary plans which help
in the achievement of main plan.
o Secondary plans will flow from the basic plan. These are meant
to support and expedite the achievement of basic plans.
o These detailed plans include policies, procedures, rules,
programs, budgets, schedules, etc.

Formulation of Derivative Plans
Formulation of Derivative Plans 4
• Formulation of Derivative Plans:
o Derivative plans are the sub plans or secondary plans which help
in the achievement of main plan.
o Secondary plans will flow from the basic plan. These are meant
to support and expedite the achievement of basic plans.
o These detailed plans include policies, procedures, rules,
programs, budgets, schedules, etc.

Securing Co-operation
5
• Securing Co-operation:
o After the plans have been determined, it is necessary rather

advisable to take subordinates or those who have to implement
these plans into confidence.
o The purposes behind taking them into confidence are :-

❖ Subordinates may feel motivated since they are involved in
decision making process.

Securing Co-operation
Securing Co-operation 5
• Securing Co-operation:
o After the plans have been determined, it is necessary rather

advisable to take subordinates or those who have to implement
these plans into confidence.
o The purposes behind taking them into confidence are :-

❖ Subordinates may feel motivated since they are involved in
decision making process.

Follow up/Appraisal of Plans
6
• Follow up/Appraisal of Plans:
o After choosing a particular course of action, it is put into action.

o After the selected plan is implemented, it is important to
appraise its effectiveness.
o This is done on the basis of feedback or information received
from departments or persons concerned.
o This enables the management to correct deviations or modify
the plan.

Follow up/Appraisal of Plans
Follow up/Appraisal of Plans 6
• Follow up/Appraisal of Plans:
o After choosing a particular course of action, it is put into action.

o After the selected plan is implemented, it is important to
appraise its effectiveness.
o This is done on the basis of feedback or information received
from departments or persons concerned.
o This enables the management to correct deviations or modify
the plan.

Objectives
What You Get:
Characteristics of Planning
The following are some of the key characteristics of planning:
• Planning is goal-oriented
• Planning is looking ahead
• Planning is an intellectual process
• Planning involves choice and decision making
• Primacy of Planning
• Planning is a Continuous Process
• Planning is all Pervasive
• Planning is designed for efficiency
• Planning is Flexible
Let us look at each in detail.
Planning is goal-oriented
• Planning is goal-oriented
• Planning is made to achieve desired objective

of business.
• The goals established should be generally
accepted otherwise individual efforts and
energies will go misguided and misdirected.
• Planning identifies the action that would lead
to desired goals quickly and economically.
• It provides sense of direction to various
activities.

Planning is looking ahead
• Planning is looking ahead
• Planning is done for future.

• It requires peeping in future, analyzing it and
predicting it.
• Thus, planning is based on forecasting.
• A plan is a synthesis of forecast.
• It is a mental predisposition for things to happen
in future.

Planning is an intellectual process
• Planning is an intellectual process
• Planning is a mental exercise involving creative

thinking, sound judgement and imagination.
• It is not a mere guesswork but a rotational
thinking.
• A manager can prepare sound plans only if he
has sound judgement, foresight and imagination.
• Planning is always based on goals, facts and
considered estimates.

Planning involves choice and decision making
• Planning involves choice and decision making
• Planning essentially involves choice among

various alternatives.
• Therefore, if there is only one possible course of
action, there is no need of planning because
there is no choice.
• Thus, decision making is an integral part of
planning.
• A manager is surrounded by a number of
alternatives. He has to pick the best depending
upon requirements and resources of the
enterprises.

Primacy of Planning
• Planning is the primary function of management
/ Primacy of Planning
• Planning lays foundation for other functions of

management.
• It serves as a guide for organizing, staffing,
directing and controlling.
• All the functions of management are performed
within the framework of plans laid out.
• Therefore, planning is the basic or fundamental
function of management.

Planning is a Continuous Process
• Planning is a Continuous Process
• Planning is a never ending function due to the

dynamic business environment.
• Plans are also prepared for specific period of
time and at the end of that period, plans are
subjected to revaluation and review in the light
of new requirements and changing conditions.
• Planning never comes to an end till the
enterprise faces issues or problems that may be
keep cropping up and they have to be tackled by
planning effectively.

Planning is all Pervasive
• Planning is all Pervasive
• It is required at all levels of management and in

all departments of enterprise.
• Of course, the scope of planning may differ from
one level to another.
• The top level may be more concerned about
planning the organization as a whole whereas
the middle level may be more specific in
departmental plans and the lower level plans
implementation of the same.

Planning is designed for efficiency
• Planning is designed for efficiency
• Planning leads to accomplishment of objectives

at the minimum possible cost.
• It avoids wastage of resources and ensures
adequate and optimum utilization of resources.
• A plan is worthless or useless if it does not value
the cost incurred on it.
• Therefore, planning must lead to saving of time,
effort and money.
• Planning leads to proper utilization of men,
money, materials, methods and machines.

Planning is Flexible
• Planning is Flexible
• Planning is done for the future.

• Since future is unpredictable, planning must
provide enough room to cope with the changes
in customer’s demand, competition, government
policies etc.
• Under changed circumstances, the original plan
of action must be revised and updated to make it
more practical.

MCQ
Q. Which of the following is the

primary function of management?
Click on the
radio button
to select the
correct
answer!
Objectives
Staffing Function of Management
The managerial function of

staffing involves manning the
organization structure through
proper and effective selection,
appraisal and development of the
personnel 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
The following are the nature of staffing function:
• Staffing is an important managerial function: Staffing function is the most

important managerial act along with planning, organizing, directing and
controlling. The operations of these four functions depend upon the manpower
which is available through staffing function.
• Staffing is a pervasive activity: As staffing function is carried out by all

managers and in all types of concerns where business activities are carried out.
• Staffing is a continuous activity: This is because staffing function continues

throughout the life of an organization due to the transfers and promotions that
take place.

Nature of Staffing Function
The following are the nature of staffing function:
• Staffing is performed by all managers: Staffing is performed by all managers

depending upon the nature of business, size of the company, qualifications and
skills of managers etc. In small companies, the top management generally
performs this function. In medium and small scale enterprise, it is performed
especially by the personnel department of that concern.
• The basis of staffing function is efficient management of personnel: Human

resources can be efficiently managed by a system or proper procedure, that is,
recruitment, selection, placement, training and development, providing
remuneration, etc.
• Staffing helps in placing right men at the right job: It can be done effectively
through proper recruitment procedures and then finally selecting the most
suitable candidate as per the job requirements.

Objectives
Steps involved in Staffing Process
The following are the steps involved in the staffing process:
1 Manpower Requirements
2 Recruitment
3 Selection
4 Orientation and Placement
5 Training and Development
6 Remuneration
7 Performance Evaluation
8 Promotion and Transfer

Manpower Requirements
11 Manpower
ManpowerRequirements
Requirements
Manpower Requirements:
2 Recruitment
The very first step in
3 Selection
staffing is to plan the
4 Orientation and Placement manpower inventory
required by a firm in order
5 Training and Development to match them with the job
requirements and demands.
6 Remuneration
Therefore, it involves
7 Performance Evaluation forecasting and determining
the future manpower needs
8 Promotion and Transfer of the concern.
Recruitment
22 Recruitment
Recruitment
Recruitment:
3 Selection
4 Orientation and Placement Once the requirements are

notified, the concern invites
5 Training and Development and solicits applications
according to the invitations
6 Remuneration
made to the desirable
7 Performance Evaluation candidates.

Selection
2 Recruitment
Selection:
33 Selection
Selection
4 Orientation and Placement Selection is the screening

step of staffing in which the
5 Training and Development solicited applications are
screened out and suitable
6 Remuneration
candidates are appointed as
7 Performance Evaluation per the requirements.

Orientation and Placement
Orientation and Placement:
2 Recruitment
3 Selection Once screening takes place,

the appointed candidates
44 Orientation and
Orientation Placement
and Placement are made familiar to the
5 Training and Development work units and work
environment through the
6 Remuneration orientation programs.
Placement takes place by
putting the right man on
8 Promotion and Transfer the right job.

Training and Development
Training and Development:

Training is a part of
2 Recruitment incentives given to the
3 Selection workers in order to develop
and help them grow within
4 Orientation and Placement the firm. Training is
generally given according to
55 Training and
Training Development
and Development
the nature of activities and
6 Remuneration scope of expansion in it.
Development also includes
7 Performance Evaluation giving them key and
important jobs as a test or
examination in order to
Let us look at each in detail. analyze their performances.
What You Get:
Remuneration
1 Manpower Requirements Remuneration:
2 Recruitment Remuneration is a kind of

compensation provided
3 Selection
monetarily to the
4 Orientation and Placement employees for their work
performances. This is given
5 Training and Development according to the nature of
job- skilled or unskilled,
66 Remuneration
Remuneration
physical or mental, etc.
7 Performance Evaluation Remuneration forms an
important monetary
8 Promotion and Transfer incentive for the
employees.
Performance Evaluation
Performance Evaluation:
Performance Evaluation is
2 Recruitment used in order to keep a
track or record of the
3 Selection behavior, attitudes as well
as opinions of the workers
4 Orientation and Placement
towards their jobs. For this
5 Training and Development regular assessment is done
to evaluate and supervise
6 Remuneration different work units in a
concern. It is basically
77 Performance
Performance Evaluation
Evaluation
concerned with knowing
8 Promotion and Transfer the development cycle and
growth patterns of the
Let us look at each in detail. employees in a firm.
Promotion and Transfer
1 Manpower Requirements Promotion and Transfer:

2 Recruitment
Promotion is said to be a
3 Selection non- monetary incentive in
which the worker is shifted
4 Orientation and Placement to a higher job position
5 Training and Development demanding bigger
responsibilities as well as
6 Remuneration shifting the workers and
transferring them to
different work units and
88 Promotion
Promotion and
and Transfer
Transfer branches of the same
organization.
MCQ
Q. Which of the following is the first

step of staffing process?
Click on the
radio button
to select the
correct
answer!
Manpower Planning
• Manpower Planning which is also
called as ‘Human Resource Planning’
consists of putting right number of
people, right kind of people at the
right place, right time, doing the right
things for which they are suited for the
achievement of goals of the
organization.
• Human Resource Planning has got an

important place in the arena of
industrialization.
• Human Resource Planning has to be a

Roll your mouse
over the icon,
systems approach and is carried out in
to learn more. a set procedure.
Did You Know?
• External sources of recruitment have to be

solicited from outside the organization. External
sources are external to an organization. But it
involves lot of time and money. The external
sources of recruitment include:
• Employment at Factory Gate
• Advertisements
• Employment Exchanges
• Employment Agencies
• Educational Institutes
• Labour Contractors
• Recommendations

Objectives
Steps in Manpower Planning
Manpower Planning has to be a systems approach and is carried out in a set
procedure and the steps of the procedure are as follows:
Let’s look at each in detail.

Analyzing the Current Manpower Inventory
Analyzing the Current Manpower

Inventory
• Before a manager makes forecast of
future manpower, the current
manpower status has to be
analyzed. For this the following
things have to be observed:
o Type of organization
o Number of departments
o Number and quantity of such
departments
o Employees in these work units
• Once these factors are registered
by a manager, he goes for the
future forecasting.

Making Future Manpower Forecasts
• Once the factors affecting the

future manpower forecasts are
known, planning can be done for
the future manpower requirements
in several work units.
• The Manpower forecasting
techniques commonly employed by
the organizations are as follows:
o Expert Forecasts
o Trend Analysis
o Work Load Analysis
o Work Force Analysis
o Other methods

• Once the factors affecting the

future manpower forecasts are
known, planning can be done for
the future manpower requirements
in several work units.
• The Manpower forecasting
techniques commonly employed by
the organizations are as follows:
o Expert Forecasts
o Trend Analysis
o Work Load Analysis
o Work Force Analysis
o Other methods

Developing Employment Programs
Developing Employment Programs
• Once the current inventory is

compared with future forecasts,
the employment programs can be
framed and developed accordingly,
which will include recruitment,
selection procedures and
placement plans.

Design Training Programs
Design Training Programs
• Training programs are then

designed based upon extent of
diversification, expansion plans,
development programs etc.
• Training programs depend upon the

extent of improvement in
technology and advancement to
take place.
• It is also done to improve upon the

skills, capabilities, knowledge of the
workers.

Employee Selection Process
Employee Selection is the process of putting right
men on right job. It is a procedure of matching
organizational requirements with the skills and
qualifications of people.
Effective selection can be done only when there is

effective matching. By selecting best candidate for
the required job, the organization will get quality
performance of employees.
Moreover, organization will face less of

absenteeism and employee turnover problems.
By selecting right candidate for the required job,

organization will also save time and money. Proper
screening of candidates takes place during selection
procedure. All the potential candidates who apply
for the given job are tested.
Employee Selection Process
But selection must be differentiated from

recruitment, though these are two phases of
employment process.
Recruitment is considered to be a positive process

as it motivates more of candidates to apply for the
job. It creates a pool of applicants.
It is just sourcing of data. While selection is a

negative process as the inappropriate candidates
are rejected here.
Recruitment precedes selection in staffing process.

Selection involves choosing the best candidate with
best abilities, skills and knowledge for the required
job.

Objectives
Steps of Employee Selection Process
The Employee Selection Process takes place in following order:
1
6 Let us look at each in detail.

Preliminary Interviews
1 Preliminary Interviews
2 • Preliminary Interviews are used to eliminate those

candidates who do not meet the minimum eligibility
criteria laid down by the organization.
3 • The skills, academic and family background,
competencies and interests of the candidate are
examined during preliminary interview.
4 • Preliminary interviews are less formalized and planned
than the final interviews.
• The candidates are given a brief about the company
5 and the job profile; and it is also examined how much
the candidate knows about the company. Preliminary
interviews are also known as screening interviews.
6
Application Banks
1
2 Application Banks
3 • The candidates who clear the preliminary interview are

required to fill application bank.
4 • It contains data record of the candidates such as details

about age, qualifications, reason for leaving previous
job, experience, etc.
5
6
Written Tests
1
3 Written Tests
4 • Various written tests conducted during selection

procedure are aptitude test, intelligence test,
reasoning test, personality test, etc.
5
• These tests are used to objectively assess the
potential candidate. They should not be biased.
6
Employment Interviews
1 • Employment Interview is a one to one interaction
between the interviewer and the potential candidate.
It is used to find whether the candidate is best suited
2 for the required job or not.
• But such interviews consume time and money both.
• Moreover the competencies of the candidate cannot
3 be judged.
4 Employment Interviews
5 • Such interviews may be biased at times. Such

interviews should be conducted properly.
• There should not be any distractions in the interview
6 room. There should be an honest communication
between candidate and interviewer.
Medical examination
1
2
• Medical tests are conducted to ensure physical fitness
3 of the potential employee.
• It will decrease chances of employee absenteeism.

4
5 Medical examination
6
Appointment Letter
1
4 • A reference check is made about the candidate

selected and then finally he is appointed by giving a
formal appointment letter.
5
6 Appointment Letter
Once the candidates are selected for the
required job, they have to be fitted as per
the qualifications.
Placement is said to be the process of

fitting the selected person at the right job
or place, that is, fitting square pegs in
square holes and round pegs in round
holes.
Once he is fitted into the job, he is given

the activities he has to perform and also
told about his duties.
The freshly appointed candidates are then

given orientation in order to familiarize
and introduce the company to him.
Generally, the information given during the

orientation program includes:
• Employee’s layout
• Type of organizational structure
• Departmental goals
• Organizational layout
• General rules and regulations
• Standing Orders
• Grievance system or procedure
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over the icon,
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Did You Know?
• The main aim of conducting Orientation is to

build up confidence, morale and trust of the
employee in the new organization, so that he
becomes a productive and an efficient employee
of the organization and contributes to the
organizational success.

Objectives
Methods of Training
Training is generally imparted in two ways:
Let’s look at each in detail. © ManagementStudyGuide.com. All rights reserved.

On-the-job Training
• On-the-job training methods are those

which are given to the employees within
the everyday working of a firm.
• It is a simple and cost-effective training
method.
• The non-proficient as well as semi-
proficient employees can be well trained
by using such training method.
• The employees are trained in actual
working scenario.
• The motto of such training is “learning
by doing.”
• Instances of such on-job training
methods are job-rotation, coaching,
temporary promotions, etc.

Off-the-job Training
• Off-the-job training methods are those in

which training is provided away from the
actual working condition.
• It is generally used in case of new
employees. Instances of off-the-job
training methods are workshops,
seminars, conferences, etc.
• Such method is costly and is effective if
and only if large number of employees
have to be trained within a short time
period.
• Off-the-job training is also known as
vestibule training, that is, the employees
Roll your mouse over are trained in a separate area such as
the icon, to learn may be a hall, entrance, reception area
more. etc. known as a vestibule, where the
actual working conditions are duplicated.
Tip
You can train your employees on four basic
grounds:
• New candidates who join an organization are

given training which familiarizes them with
organizational mission, vision, rules and
regulations and working conditions.
• Existing employees are trained to refresh and
enhance their knowledge.
• If any updates and amendments take place in
technology, training is given to cope up with
those changes. The employees are trained
about use of new equipment and work
methods.
• When promotion and career growth becomes
important. Training is given so that
employees are prepared to share the
responsibilities of the higher level job.
Objectives
Methods of Employee Remuneration
There are mainly two types or methods of Employee Remuneration:
• Time Rate Method
• Piece Rate Method

What You Get:
Time Rate Method
Time Rate Method:
• Under ‘Time Rate Method or System’,

remuneration is directly linked with the
time spent or devoted by an employee on
the job.
• The employees are paid a fixed pre-

decided amount hourly, daily, weekly or
monthly irrespective of their output. It is
a very simple method of remuneration.
• It leads to minimum wastage of resources

and lesser chances of accidents.
Time Rate Method
Time Rate Method:
• Under ‘Time Rate Method or System’,

remuneration is directly linked with the
time spent or devoted by an employee on
the job.
• The employees are paid a fixed pre-

decided amount hourly, daily, weekly or
monthly irrespective of their output. It is
a very simple method of remuneration.
• It leads to minimum wastage of resources

and lesser chances of accidents.
Piece Rate Method
Piece Rate Method:
• ‘Piece Rate Method’ is a method of

compensation in which remuneration is
paid on the basis of units or pieces
produced by an employee.
• In this system, emphasis is more on

quantity output rather than quality
output.
• Under this system, the determination of

employee cost per unit is not difficult
because salaries differ with output.
Piece Rate Method
Piece Rate Method:
• ‘Piece Rate Method’ is a method of

compensation in which remuneration is
paid on the basis of units or pieces
produced by an employee.
• In this system, emphasis is more on

quantity output rather than quality
output.
• Under this system, the determination of

employee cost per unit is not difficult
because salaries differ with output.
MCQ
Q. ____________________ is a
method of compensation in which
remuneration is paid on the basis
of units produced by an employee.
Click on the
radio button
to select the
correct
answer!
Organizing Function of Management
Organizing is the function of management

which follows planning. It is a function in
which the synchronization and
combination of human, physical and
financial resources takes place. All the
three resources are important to get
results.
Therefore, organizational function helps

in achievement of results which in fact is
important for the functioning of a
concern. According to Chester Barnard,
“Organizing is a function by which the
concern is able to define the role
positions, the jobs related and the co-
ordination between authority and
responsibility. Hence, a manager always
has to organize in order to get results.”
Objectives
Steps of Organizing Function Process
A manager performs organizing function with the help of following steps:
• Identification of Activities
• Departmentally Organizing the Activities
• Classifying the Authority
• Co-ordination between Authority and Responsibility

Identification of Activities
• Identification of Activities
Identification of Activities:
All the activities which have to be performed in a concern have to be identified

first. For example, preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be grouped and
classified into units.
Departmentally Organizing the Activities
• Departmentally Organizing the Activities
Departmentally Organizing the Activities:
In this step, the manager tries to combine and group similar and related activities
into units or departments. This organization of dividing the whole concern into
independent units and departments is called departmentation.
Classifying the Authority
• Classifying the Authority
Classifying the Authority:
Once the departments are made, the manager likes to classify the powers and its
extent to the managers. This activity of giving a rank in order to the managerial
positions is called hierarchy. The top management is into formulation of policies,
the middle level management into departmental supervision and lower level
management into supervision of foremen. The clarification of authority helps in
bringing efficiency in the running of a concern. This helps in avoiding wastage of
time, money, effort, in avoidance of duplication or overlapping of efforts and this
helps in bringing smoothness in a concern’s working.
Co-ordination between Authority and Responsibility
• Co-ordination between Authority and Responsibility
Co-ordination between Authority and Responsibility:
Relationships are established among various groups to enable smooth

interaction toward the achievement of the organizational goal. Each individual is
made aware of his authority and he knows whom he has to take orders from and
to whom he is accountable and to whom he has to report. A clear organizational
structure is drawn and all the employees are made aware of it.
Importance of Organizing Function
The following are a few key points that show the importance of organizing
function:
1 Specialization
2 Well Defined Jobs
3 Clarifies Authority
4 Co-ordination
5 Effective Administration
6 Growth and Diversification
7 Sense of Security
8 Scope for New Changes

Specialization
function:
11 Specialization
Specialization
2 Well Defined Jobs Specialization:

Organizational structure is a
4 Co-ordination network of relationships in
which the work is divided
5 Effective Administration into units and departments.
This division of work is
6 Growth and Diversification
helping in bringing
7 Sense of Security specialization in various
activities of concern.

Well Defined Jobs
function:
1 Specialization Well Defined Jobs:

22 Well
WellDefined Jobs
Defined Jobs
Organizational structure
3 Clarifies Authority helps in putting right men
on right job which can be
4 Co-ordination done by selecting people
5 Effective Administration for various departments
according to their
6 Growth and Diversification qualifications, skill and
experience. This is helping
7 Sense of Security
in defining the jobs properly
8 Scope for New Changes which clarifies the role of
every person.
Clarifies Authority
function:
Clarifies Authority:
1 Specialization
Organizational structure helps
2 Well Defined Jobs in clarifying the role positions to
every manager (status quo).
Clarifies Authority This can be done by clarifying
the powers to every manager
4 Co-ordination and the way he has to exercise
those powers should be
clarified so that misuse of
Growth and Diversification powers does not take place.
6
Well defined jobs and
7 Sense of Security responsibilities attached helps
in bringing efficiency into
8 Scope for New Changes managers working. This helps in
increasing productivity.
Co-ordination
function: Co-ordination:
1 Specialization
Organization is a means of
2 Well Defined Jobs creating co- ordination
among different
3 Clarifies Authority departments of the
4 Co-ordination enterprise. It creates clear
4 Co-ordination
cut relationships among
5 Effective Administration positions and ensures
mutual co-operation among
6 Growth and Diversification individuals. Harmony of
7 Sense of Security work is brought by higher
level managers exercising
8 Scope for New Changes their authority over
interconnected activities of
Let us look at each in detail. lower level manager.
Effective Administration
function:
1 Specialization
Effective Administration:
2 Well Defined Jobs
The organization structure
3 Clarifies Authority is helpful in defining the
Co-ordination jobs positions. The roles to
4
be performed by different
Effective Administration managers are clarified.
Specialization is achieved
6 Growth and Diversification through division of work.
7 Sense of Security This all leads to efficient
and effective
8 Scope for New Changes administration.

Growth and Diversification
function:
Growth and Diversification:
1 Specialization A company’s growth is totally
dependent on how efficiently
2 Well Defined Jobs and smoothly a concern works.
Efficiency can be brought about
3 Clarifies Authority by clarifying the role positions
to the managers, co-ordination
4 Co-ordination between authority and
responsibility and concentrating
on specialization. In addition to
this, a company can diversify if
66 Growth
Growth andand Diversification
Diversification
its potential grows. This is
7 Sense of Security possible only when the
organization structure is well-
8 Scope for New Changes defined. This is possible
through a set of formal
Let us look at each in detail. structure.
Sense of Security
function:
Sense of Security:
1 Specialization
Organizational structure
2 Well Defined Jobs clarifies the job positions.
3
The roles assigned to every
Clarifies Authority
manager are clear. Co-
4 Co-ordination ordination is possible.
Therefore, clarity of powers
5 Effective Administration helps automatically in
Growth and Diversification increasing mental
6
satisfaction and thereby a
77 Sense of of
Sense Security
Security sense of security in a
concern. This is very
important for job-
Let us look at each in detail. satisfaction.
Scope for New Changes
function:
Scope for New Changes:
1 Specialization
Where the roles and activities to
Well Defined Jobs be performed are clear and
2
every person gets independence
3 Clarifies Authority in his working, this provides
enough space to a manager to
4 Co-ordination develop his talents and flourish
his knowledge. A manager gets
5 Effective Administration ready for taking independent
decisions which can be a road or
6 Growth and Diversification path to adoption of new
7 Sense of Security techniques of production. This
scope for bringing new changes
88 Scope
Scope forfor
NewNew Changes
Changes into the running of an enterprise
is possible only through a set of
Let us look at each in detail. organizational structure.
Objectives
Principles of Organizing
• The organizing process can be done efficiently if the managers have certain
guidelines so that they can take decisions and can act. To organize in an effective
manner, the following principles of organization can be used by a manager:
Specialization
Supervision
Principle of
Scalar Chain
Principle of
Principle of
Principle of
Principle of
Command
Functional
Definition
Control/
Unity of
Span of
• Let us look at each in detail.

Principle of Specialization
Principle of Specialization:
Specialization
Principle of
According to the principle, the whole work of a

concern should be divided amongst the subordinates
on the basis of qualifications, abilities and skills. It is
through division of work specialization can be
achieved which results in effective organization.

Principle of Functional Definition
Principle of Functional Definition:
According to this principle, all the functions in a

concern should be completely and clearly defined to
the managers and subordinates. This can be done by
Principle of
Functional
Definition
clearly defining the duties, responsibilities, authority

and relationships of people towards each other.
Clarifications in authority- responsibility
relationships helps in achieving co- ordination and
thereby organization can take place effectively.
Clarification in the authority-responsibility
relationship helps in efficient organization.

Principles of Span of Control/Supervision
Principles of Span of Control/Supervision:
According to this principle, span of control is a span

Principle of Span
of supervision which depicts the number of

Supervision
of Control/
employees that can be handled and controlled

effectively by a single manager. According to this
principle, a manager should be able to handle what
number of employees under him should be decided.
This decision can be taken by choosing either from a
wide or narrow span. There are two types of span of
control:
• Wide Span of Control
• Narrow Span of Control

Principle of Span
Supervision
of Control/

Principles of Span of Control/Supervision:
According to this principle, span of control is a span

Principle of Span
of supervision which depicts the number of

Supervision
of Control/
employees that can be handled and controlled

effectively by a single manager. According to this
principle, a manager should be able to handle what
number of employees under him should be decided.
This decision can be taken by choosing either from a
wide or narrow span. There are two types of span of
control:
• Wide Span of Control
• Narrow Span of Control

Principle of Scalar Chain
Principle of Scalar Chain:
Scalar chain is a chain of command or authority

which flows from top to bottom. With a chain of
authority available, wastages of resources are
Scalar Chain
Principle of
minimized, communication is affected, overlapping

of work is avoided and easy organization takes place.
A scalar chain of command facilitates work flow in an
organization which helps in achievement of effective
results. As the authority flows from top to bottom, it
clarifies the authority positions to managers at all
level and that facilitates effective organization.

Principle of Unity of Command
Principle of Unity of Command:
It implies one subordinate-one superior relationship.

Principle of
Command
Every subordinate is answerable and accountable to

Unity of
one boss at one time. This helps in avoiding

communication gaps and feedback and response is
prompt. Unity of command also helps in effective
combination of resources, that is, physical, financial
resources which helps in easy co- ordination and,
therefore, effective organization.

MCQ
Q. Which of the following principles of

organizing implies one
subordinate-one superior
relationship?
Click on the
radio button
to select the
correct
answer!
Objectives
What is Controlling?
Controlling consists of verifying

whether everything occurs in
conformities 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.”
Roll your mouse over
the icon, to learn
more.

Tip
Planning and controlling are two separate functions of
management, yet they are closely related. According to
Billy Goetz, "Relationship between the two can be
summarized in the following points:
• Planning precedes controlling and controlling succeeds
planning.
• Planning and controlling are inseparable functions of
management.
• Activities are put on rails by planning and they are kept
at right place through controlling.
• The process of planning and controlling works on
Systems Approach which is as follows :
o Planning → Results → Corrective Action
• Planning and controlling are integral parts of an
organization as both are important for smooth running
of an enterprise.
• Planning and controlling reinforce each other. Each
drives the other function of management.
Features of Controlling Function
Following are the characteristics of controlling function of management:
Controlling is an end
function:
A function which comes
once the performances are
made in conformities with
plans.
Controlling is related with planning: Planning and Controlling are

two inseparable functions of management. Without planning,
controlling is a meaningless exercise and without controlling,
planning is useless. Planning presupposes controlling and controlling
succeeds planning.

Features of Controlling Function
Following are the characteristics of controlling function of management:
Controlling is a
Controlling is a pervasive dynamic process: This
function: This means it is is because controlling
performed by managers at requires taking
all levels and in all type of reviewable methods;
concerns. changes have to be
made wherever
possible.
Controlling is forward looking: This is because effective control is

not possible without past being controlled. Controlling always looks
to future so that follow-up can be made whenever required.

What You Get:
Objectives
Steps of the Controlling Process
Controlling as a management function involves
following steps:
Establishment of
Standards
Measurement of
Performance
Comparison of Actual and

Standard Performance
Taking Remedial Actions

Establishment of Standards
following steps:
Establishment of
Standards
Establishment of Standards:
Measurement of Standards are the plans or the targets which

Performance have to be achieved in the course of business
function. They can also be called as the
Comparison of Actual and criterions for judging the performance.
Standard Performance Controlling becomes easy through
establishment of these standards because
controlling is exercised on the basis of these
Taking Remedial Actions standards.

Establishment of Standards
following steps:
Establishment of
Standards
Establishment of Standards:
Measurement of Standards are the plans or the targets which

Performance have to be achieved in the course of business
function. They can also be called as the
Comparison of Actual and criterions for judging the performance.
Standard Performance Controlling becomes easy through
establishment of these standards because
controlling is exercised on the basis of these
Taking Remedial Actions standards.

Measurement of Performance
following steps:
Establishment of
Standards Measurement of Performance:
The second major step in controlling is to

Measurement
Measurementofof
measure the performance. Finding out
Performance
Performance
deviations becomes easy through measuring
the actual performance. Performance levels are
Comparison of Actual and sometimes easy to measure and sometimes
Standard Performance difficult. Measurement of tangible standards is
easy as it can be expressed in units, cost, money
terms, etc. Quantitative measurement becomes
Taking Remedial Actions difficult when performance of manager has to
be measured.

Comparison of Actual & Standard Performance
following steps:
Establishment of
Standards Comparison of Actual and Standard
Performance:
Measurement of Comparison of actual performance with the

Performance planned targets is very important. Deviation can
be defined as the gap between actual
Comparison
ComparisonofofActual
Actualand
and performance and the planned targets. The
Standard
StandardPerformance
Performance 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
Taking Remedial Actions out whether the deviation is positive or
negative or whether the actual performance is
in conformity with the planned performance.

Comparison of Actual & Standard Performance
following steps:
Establishment of
Standards Comparison of Actual and Standard
Performance:
Measurement of Comparison of actual performance with the

Performance planned targets is very important. Deviation can
be defined as the gap between actual
Comparison
ComparisonofofActual
Actualand
and performance and the planned targets. The
Standard
StandardPerformance
Performance 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
Taking Remedial Actions out whether the deviation is positive or
negative or whether the actual performance is
in conformity with the planned performance.

Taking Remedial Actions
following steps:
Establishment of Taking Remedial Actions:

Standards
Once the causes and extent of deviations are
known, the manager has to detect those errors
Measurement of and take remedial measures for it. There are
Performance two alternatives here:
• Taking corrective measures for deviations
Comparison of Actual and which have occurred and
Standard Performance • After taking the corrective measures, if the
actual performance is not in conformity with
plans, the manager can revise the targets. It
TakingRemedial
Taking RemedialActions
Actions 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.
Objectives
Directing Function of Management
Directing is said to be a process in which the

managers instruct, guide and oversee the
performance of the workers to achieve
predetermined goals. Directing is said to be
the heart of management process.
Planning, organizing, staffing has got no
importance if direction function does not
take place. Directing initiates action and it is
from here actual work starts. Direction is
said to be consisting of human factors.
Directing Function of Management
In simple words, it can be described as

providing guidance to workers is doing work. In
field of management, direction is said to be all
those activities which are designed to
encourage the subordinates to work effectively
and efficiently. According to Human, “Directing
consists of process or technique by which
instruction can be issued and operations can
be carried out as originally planned” Therefore,
Directing is the function of guiding, inspiring,
overseeing and instructing people towards
accomplishment of organizational goals.
Characteristics of Direction Function
Direction has got following characteristics:

Characteristics of Direction Function
Direction has got following characteristics:

Real Life Example
Let us now look at a

real life example to
understand the role of
Supervisor in carrying
out the Directing
function in an
organization.

Real Life Example
Thomas Blair is a supervisor

at one of Perseus’ steel
manufacturing plants.
Like any other supervisor he
carries out the directing
function and is responsible
for assigning of jobs and tasks
to various workers at the
plant.

Real Life Example
He also guides and instructs

the workers for day to day
activities and is responsible for
the quality as well as quantity
of production.
Thomas ensures that discipline
is maintained among the
workers at the plant and
communicates workers’
problems, suggestions and
recommendatory actions to
his managers.

Real Life Example
Recently, a contagious fever

had spread among several of
the workers at Thomas’ plant.
Due to this many of the
workers are absent from work
on sick leave.
The daily production level at
the plant is suffering because
of the lower number of
workers.

Real Life Example
Thomas’ boss, Gerard Butler

calls him for a meeting to
discuss the situation.
He informs Thomas that there
is a large shipment of steel rolls
due in a week to one of
Perseus’ most esteemed client.
Thomas lets Gerard know that
this is a grave situation and the
work load to finish the daily
productivity limits is very high.

Real Life Example
Thomas suggests that he can

get each of the present
workers to put in at least six
hours of over-time daily to
reach the daily production
levels.
However, the management
should also compensate each
worker for each hour of over-
time with two-times their
normal hourly wages.

Real Life Example
Gerard discusses the situation

with the higher management.
He promises Thomas that each
worker would be compensated
for their over-time hours as
Thomas had suggested.
Thomas gathers all the
workers and informs them
about the situation and the
need for working over-time.

Real Life Example
He also lets them know the

management’s decision on the
over-time compensation.
All workers agree to work at
least six to eight hours over-
time daily as they are happy
with the hourly wage rate that
Thomas had negotiated with
the management for them.

Real Life Example
In turn, Thomas is able to get

all his workers to complete the
daily production levels and also
ship the crucial consignment
before the deadline.
Thomas’ workers, his boss as
well as the higher management
are very happy with Thomas’
managerial skills

Real Life Example
Thus, you can see that

managers at the lower level are
required to keep people happy
at all levels from workers to
higher management and carry
out the directing function.
Also, it is these managers at
the lower level of management
who get the actual work done
from the workers and help
fulfil the objectives and
strategies of the organization.

Real Life Example
Supervisors have got an

important role to play in
directing function of
management.
As you have seen, a supervisor
such as Thomas has to perform
the following directing
functions of management: as a
Planner, Manager, Guide and
Leader, Mediator, Inspector and
Counsellor

Real Life Example
As a Planner:
• A supervisor has to act as a
planner and plan the day-
today activities and work
schedules in the factory.
• At the same time he has to
allocate and divide the
work to various workers
according to their
capabilities.

Real Life Example
As a Manager:
• A supervisor is a part of the
management team of an
enterprise.
• He is, in fact, a directing
and operative manager.

Real Life Example
As a Guide and Leader:

• A supervisor directs the
workers by guiding them in
performing their daily
tasks.
• In fact, he plays a role of a
motivator by directing and
telling them.

Real Life Example
As a Mediator:
• A Supervisor is link
between management and
workers.
• He is the spokesperson of
management as well as
worker.

Real Life Example
As an Inspector:
• A supervisor also implements
discipline in the factory.
• He regularly checks the progress
of work against the set
schedules and records the work
performances and reports the
deviations, if any.
• He sets up standards, rules and
regulations which have to be
followed by workers during their
work.

Real Life Example
As a Counsellor:
• A supervisor also plays the
role of a counsellor to the
worker’s problem.
• He tries to build good relations
to gain trust, confidence and
co-operation from workers.
• He listens to the workers’
problems and tries to solve
their problems and satisfy the
workers.

Importance of Directing Function
Directing or Direction function is said to be the
heart of management of process and therefore, is
the central point around which accomplishment of
goals take place. A few philosophers call Direction
as “Life spark of an enterprise”. It is also called as
on actuating function of management because it is
through direction that the operation of an
enterprise actually starts. Being the central
character of enterprise, it provides
many benefits to a concern
which are as follows:
It Initiates Actions
Let’s look at each in detail.

It Ingrates Efforts

Means of Motivation

It Provides Stability

Coping up with the changes

Efficient Utilization of Resources

Practice

Practice
Choose any manufacturing

company of your choice. Then,
observe and note down the
following observations about the
company’s functions of
management.
• What are the functions of

management carried out in this
company?
• What role do supervisors play
in the manufacturing plants of
this company?

Case Study
Howard Gotham works 1. What can Howard do

as a Project Manager at to sharpen his
Leonard Inc. persuasion skills?
Howard is responsible 2. What principles of

for having preliminary persuasion can
discussions with clients Howard use to
and obtaining the work persuade people?
contracts.

Summary
• The Functions of Management are:
• Planning
• Organizing
• Staffing
• Controlling
• Directing
• Planning’ means looking ahead and chalking out future courses of

action to be followed. It is a preparatory step. It is a systematic
activity which determines when, how and who is going to perform
a specific job. Planning is a detailed program regarding future
courses of action. It is rightly said “Good planning means half the
job is done.
• Staffing is the managerial function that involves manning the

organization structure through proper and effective selection,
appraisal and development of the personnel to fill the roles
assigned to the employers/workforce.
Summary
• Controlling consists of verifying whether everything occurs in

conformities 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.
• Organizing is a function by which the concern is able to define the

role positions, the jobs related and the co-ordination between
authority and responsibility. Hence, a manager always has to
organize in order to get results.
• Directing is said to be a process in which the managers instruct,

guide and oversee the performance of the workers to achieve
predetermined goals. Directing is said to be the heart of
management process. Planning, organizing, staffing has got no
importance if direction function does not take place.

Glossary
Click each alphabet to learn more.
S
Glossary
• Classification – Classification is C
a group of people or things
arranged by class or category
D
• Command - Command is a
position of highest authority
F
S
Glossary
• Dependence – Dependence is C
the state of relying on or being
controlled by someone or
something else
D
• Decision - Decision is a position,
opinion or judgment reached
after consideration F
S
Glossary
• First-line - First-line means a C

fortified position especially one
marking the most forward position
of troops or a workforce
D
• Forms – Forms is a category of
things distinguished by some
common characteristic or quality F
S
Glossary
• Performing – Performing means C

to carry out a function or an
action
D
• Process – Process is a particular
course of action intended to
achieve a result
F
S
Glossary
• Society – Society is an extended

social group having a distinctive C
cultural and economic
organization
D
• Systems – Systems is a group of
independent but interrelated
elements comprising a unified F
whole
S

Functions of Management: Planning Staffing Organizing Controlling Directing

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Planning

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Hi, I am Gavin Smith. I am a member

Hi, I am Rachel Blake. I work as a

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Hello, I am Leo Cooper. I work as a

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Hi, my name is Kyle Watson. I am a

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Yes, each one has a different function to

This difference between the three managerial

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The term ‘Functions of Management’ refers to

The five key functions of management are:

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Hence, to understand the management of any

Let us learn about ‘Functions of Management’

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• It is a systematic activity which

• Planning is a detailed program

• It is rightly said “Good planning means

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• It is the basic management function

• According to Urwick, “Planning is a

• According to Koontz & O’Donell,

• Planning bridges the gap

• It makes possible things to occur

Let us now look at each in detail.

o Planning requires a systematic approach.

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o Planning requires a systematic approach.

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• Establishment of Planning Premises:

o Planning premises are the assumptions about the likely shape of

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• Establishment of Planning Premises:

o Planning premises are the assumptions about the likely shape of

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• Choice of Alternative Course of Action:

o When forecast are available and premises are established, a

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• Choice of Alternative Course of Action:

o When forecast are available and premises are established, a

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• Formulation of Derivative Plans:

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• Formulation of Derivative Plans:

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o After the plans have been determined, it is necessary rather

o The purposes behind taking them into confidence are :-

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o After the plans have been determined, it is necessary rather

o The purposes behind taking them into confidence are :-

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• Follow up/Appraisal of Plans:

o After choosing a particular course of action, it is put into action.

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• Follow up/Appraisal of Plans:

o After choosing a particular course of action, it is put into action.

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• Planning is looking ahead

• Planning is an intellectual process