Functions of Management:

1. Planning:
When management is reviewed as a process, planning is the first function performed by a
manager. The work of a manager begins with the setting of objectives of the organisation and
goals in each area of the business.

This is done through planning. A manager probes the present to find where he is and he then
forecasts future objectives which will indicate where he wants to be, i.e., the destination to be
reached. The alternatives to achieve the objectives are evaluated and the selected alternative
becomes the plan of action.

Once the plan is formulated, the manager has to indicate the objectives of the plan and steps to
be taken by his subordinates. By communicating he makes the objectives effective. In practice,
planning function is all-pervading.

It is involved in all other managerial functions. For example, budget is a part of planning as
well as an instrument of control. Planning makes things happen that would not otherwise occur.
Planning includes objectives, strategies, policies, procedures, programmes, etc., as it involves
making choices, decision making is the heart of planning.

2. Organising:
Managing a business is not just planning. It includes putting life into the plan by bringing
together the executive personnel, workers, capital, machinery, materials, physical facilities and
other things or services to execute the plans. When these resources are assembled the enterprise
comes to life.

Organising involves determining and noting activities needed to fulfil the objectives, grouping
these activities into manageable units or departments, and assigning such groups of activities
to managers. Delegation of authority creates an organisation. It determines authority-
responsibility relationship. These relationships must be properly co-ordinated to secure unity
of organisation.
 3. Staffing:
Staffing involves filling the positions needed in the organisation structure by appointing
competent and qualified persons for the jobs. This needs man-power planning and man-power
management. We have scientific selection and training of personnel.

We have to provide suitable methods of remuneration and performance appraisal. Much of the
work relating to human resource planning and management is delegated to a personnel
manager. However, top management is ultimately responsible for all activities relating to
staffing.

4. Directing:
Some management experts prefer leading in place of directing particularly under a democratic
managerial set up. The function of leading has been termed motivating, directing, guiding,
stimulating and actuating. This managerial function is directly concerned with the human
factors of an organisation.

A manager by leadership and motivation has to direct and guide all subordinates and get the
work done through people. Direction involves managing managers, managing workers and the
work through the means of motivation, proper leadership, effective communication as well as
co-ordination.

A manager must develop the ability to command. He must know how to direct others, i.e., how
to issue orders and instructions, without arousing resentment or offence and he must be able to
secure willing obedience from his subordinates without destroying their initiative and
creativity.

5. Motivating:
This managerial function is fully reflected when we define management as the art of getting
things done willingly through and with other people.

Management is interested in two primary elements:

(1) Things, i.e., material resources and

(2) Men and women, i.e., human resources.

Thing is subject to the laws of mechanics and it is susceptible to scientific or machine-like
treatment. But human beings cannot be subjected to scientific or machinelike treatment.
However, through the power of leadership and the science of co-operation, we can evolve a
suitable method of integrating the interests of individuals and the organisation.

The power of management exists with or through people, but never over them, at least in a
democratic society. Authority may be imposed from above but it must be supported, nourished
and recognised from below, i.e., from the subordinates. Then only the authority is meaningful
and it can work smoothly.

The managerial power has its source in the methods of leading, motivating, appraising,
teaching, influencing, counselling, coaching, delegating and setting an example. So the
manager plans, organises, directs, and motivates the people working with him. Motivation and
leadership are the master keys to successful management of any enterprise.

They are also responsible to ensure productivity of human resources. Motivation can set into
motion a person to carry out certain activity. Motivation assumes unique importance in modern
business management. Democratic leadership heavily relies on motivation of employees,
through financial and non-financial incentives.

Human relations in industry have accorded special emphasis to this managerial function.
Effective communication and participation enhance the power of motivation. Feedback of
information (upward communication) is necessary for effective motivation and direction.

6. Controlling:
Controlling is the last phase of the management process. Control is the process of measuring
actual results or present performance, comparing those results to plans or some standard of
performance, finding the reason for deviations of actual from desired result and taking
corrective action when necessary.

The corrective action may lead to a change in the method of implementation of the plan or
change in the plan itself or even a change in the objective. Usually, our desired performance
standards are the objectives, policies, programmes, procedures and budgets.
 7. Co-Ordination:
Each managerial function is an exercise in co-ordination. It is said that co-ordination is the
essence of management. It is an integral plan of direction. Coordination is concerned with
harmonious and unified action directed toward a common objective. It involves inter-relating
various parts of the work or organisation.

It is not a separate activity but a condition that should diffuse itself through all phases of the
management process. Co-ordination is an orderly arrangement of group efforts to provide unity
of action.

It ensures that all groups and persons work efficiently, economically and in harmony. Co-
ordination can be accomplished automatically if we have sound objectives, policies, procedures
and programmes and a sound organisation structure.

Coordination is essential in a large organisation because we have:

(1) Multiple and complex activities,

(2) Complex and elaborate organisation structure,

(3) Multiple levels of management due to limited span of control, and

(4) Acute division of labour leading to increasing use of specialists.

A manager must co-ordinate the work for which he is accountable by balancing, timing, and
integrating the work. Such efforts at co-ordination are required at all levels of management.

Board of Directors, managing directors, heads of divisions and/or departments are the usual
agencies of co-ordination to develop an orderly and integrated pattern of group efforts in proper
sequence and at proper time. Co-ordination requires effective channels of communication.
Person-to-person communication is most effective for co-ordination.
 8. Communication:
In its broadest sense, communication is the transmission of meaning to others. It means transfer
of information and understanding from person to person a flow of information from the top to
the bottom and from the bottom to the top as well as horizontal or sideways on the same level
of organisation.

In formal communication we have dissemination of information primarily. In biter-personal

communication between two or more persons we have transmission of information as well as
flow of understanding based on two-way traffic of communication.

Personal or face-to-face communication is the best form of communication. Managerial

leadership depends upon upward communication to the leader in the form of feedback so that
he can understand the feelings, emotions, motives and problems of subordinates and his power
will have support and acceptance from below.

Communication also leads to sharing of information, ideas and knowledge. Communication is

the cement that makes organisations. It enables a group to think together, and act together.
Society’s very existence is dependent upon communication, i.e., passing of information and
understanding from one person to another.

Communication may be through:

(i) Actions, e.g., smile, frown, facial expressions;

(ii) Spoken words, e.g. talk;

(iii) Written or printed words;

(iv) Graphs, diagrams, figures, models, pictures, charts and tables;

(v) Silence can also communicate at times