FUNCTIONS OF MANAGEMENT

The different functions of managements are:

• Planning
• Organizing
• Staffing
• Directing
• Controlling
 1. PLANNING:

 It is the most basic or primary function of management.

 Planning involves determining the objectives and selecting courses of action that will lead to
the achievement of predetermined objectives.
 It is basically thinking before acting i.e. anticipating the problem and then developing their
solution.
 According to Henry Fayol ,“Planning means to assess the future and make provision for it.”
 It is a mental process that requires the use of intellectual faculties, foresight and second
judgement.
 Planning provides answers to questions like:
- What actions are necessary to achieve the desired objectives?
- Why are these actions necessary?
- Who is responsible for these actions?
- Where will these actions take place?
- When will these actions take place?
- How will these actions place?
 The process of planning consists of:
(a) Determination of objectives
(b) Forecasting or anticipating the future
(c) Decision making i.e., choosing a course of action from available alternatives
(d) Formulation of policies, programmes, budgets, schedules etc. to achieve the
objectives.
(e) Laying down of procedures and standards of performance.
 It is a continuous process which enables us to do things in an orderly and
efficient manner. It is always goal oriented.
2. ORGANIZING:

Organizing is the process of establishing harmonious authority-responsibility

relationships among the members of the enterprise.

Organizing is an important element of management because it is through

organizing that a manager brings together the material and human resources
required for the achievement of desired goals.
According to Fayol, ”To organize a business is to provide it with everything useful to its functioning raw
materials, tools, capital and personnel.”

The process of organizing consists of following steps:

(a) Determining and defining the activities required for the achievement of organizational goals,
(b) Grouping the activities into logical and convenient units,
(c) Assigning the duties and activities to specific positions and people,
(d) delegating authority to these positions and people,
(e) fixing responsibility for performance, and
(f) Coordinating horizontal and vertical relationships throughout the organization.
Hence, organizing is the process by which the structure and allocation of jobs are determined.

3. STAFFING:

Staffing in general is the process of filling all positions in the organization with adequate and qualified
personnel.
According to Koontz and O’Donnell, “Staffing is the executive function where the recruitment, selection,
compensating, training, promotion and retirement of subordinate managers.”
Staffing consists of :
1. - Manpower planning
2. - Recruitment
3. - Selection
4. - Training
5. - Compensation
6. - Promotion
7. - Maintenance of managerial personnel

The objective of staffing function is to obtain competent employees and to provide the climate which
will be most encouraging to superior performance.

Efficient staffing helps to avoid under utilization of personnel. It also helps in discovering talented people and
developing them to move up the corporate ladder.

Staffing function is difficult as it deals with the human factor where completely objective judgments is not always
possible.
Staffing function has become important with growing size of organization and technological advancements
 DIRECTING MANAGEMENT
in ACTION

*DIRECTING IS THE MANAGERIAL FUNCTION OF

INSTRUCTING,GUIDING, SUPERVISING,INSPIRING,AND
INFLUENCING PEOPLE TOWARDS THE ACCOMPLISHMENT
OF PREDETERMINED OBJECTIVES.

DIRECTION: KEY TO CANALISE RESOURCES

 PRINCIPLES OF EFFECTIVE
CHARACTERISTICS DIRECTION

 DYNAMIC FUNCTION
 HARMONY OF OBJECTIVES

 UNIVERSAL FUNCTION
 UNITY OF COMMAND

 CONTINUING FUNCTION
 DIRECT SUPERVISION

 PERFORMANCE-ORIENTED
 EFFEECTIVE LEADERSHIP
FUNCTION
 APPROPRIATE TECHIQUES
 INVOLVES HUMAN FACTOR
 CONTROLLING

CONTROL IS A PROCESS OF COMPARISION AND

VERIFICATION THAT ENSURES EXPECTED PERFORMANCE.

CONTROL PROCESS:
ESENTIAL FOR
REALISING
OBJECTIVE
 Controlling procedures

1. Measuring actual performance

2. Comparing actual performance to standards

3. Taking corrective action to ensure that planned events

actually occur
 ESTABLISHMENTS OF MEASUREMENT OF
STANDARDS 1 ACTUAL PERFORMANCE

STEPS IN 2
CONTROLLING
PROCESS

TAKING CORRECTIVE
ANALYSIS OF VARIANCES
3 ACTIONS
 INNOVATION

INNOVATION IS THE NEW IDEAS WHICH MAY EITHER RESULT IN

DEVELOPMENT OF NEW PRODUCTS OR FINDING NEW USES
FOR OLDER ONES

INNOVATION:
THE INTRODUCTION OF SOMETHING NEW
 NEED FOR INNOVATION IN BUSINESS

1. FOR BUSINESS SURVIVAL

2. FOR BETTER RETURNS

3. TO TAKE ADVANTAGE OF OPPURTUNITY

4. DESIRE FOR HIGHER BUSINESS REVENUES

 REPRESENTATION

 REPRESENTATION IS THE PRESENTATION OF FACTS

OR REASONS EXPRESSED IN WORDS TO INDUCE A
PARTICULAR COURSE OF ACTION, SUCH AS SIGNING OF
CONTRACTS