Functions of Management
Management is the process of getting things done through others efficiently and effectively. According to Henri Fayol, management comprises five major functions which have been further expanded by modern theorists.
- Planning
Definition: Planning is the primary function that involves deciding in advance what to do, how to do it, when to do it, and who should do it.
Key Features:
- Sets objectives and goals
- Defines policies and strategies
- Prepares plans and procedures
- Reduces uncertainties and prepares for contingencies
System Approach to Planning:
- Objectives – Clear goals
- Policies – Guidelines for decisions
- Plans – Specific actions
- Procedures – Step-by-step instructions
Types of Planning:
- Strategic (long-term, top-level)
- Tactical (medium-term, middle management)
- Operational (short-term, lower level)
- Contingency (for unexpected events)
- Micro-level/Managerial (unit/department level)
- Organizing
Definition: Organizing is the process of creating a structure of roles and responsibilities to achieve the objectives.
Activities:
- Grouping tasks into departments
- Assigning roles
- Defining authority relationships
Principles (Marshall):
- Unity of Command: One superior to one subordinate
- Scalar Chain: Hierarchical communication line
- Span of Control: Number of subordinates under a manager
Delegation:
- Assigning responsibility
- Granting authority
- Ensuring accountability
- Staffing
Definition: Staffing involves recruitment, selection, training, development, and appraisal of human resources.
Note: Staffing bridges organizing and controlling functions.
- Directing
Definition: Directing is the process of leading, guiding, motivating, and supervising employees to perform efficiently.
Elements of Directing:
- Leadership: Influencing people
- Motivation: Inspiring effort
- Supervision: Overseeing performance
- Communication: Flow of information
Note: Directing is considered the heart of management.
- Controlling
Definition: Controlling ensures that activities are performed as per plans, and deviations are corrected.
Purpose: Maintain discipline, ensure goals, improve performance.
- Coordinating
Definition: Coordinating is harmonizing efforts and activities of different units to achieve common goals.
Features:
- Ensures unity of effort
- Avoids duplication and conflict
- Synchronizes individual and departmental goals
- Reporting
Definition: Reporting is the regular and timely communication of performance and progress to concerned authorities.
Used in extension work, budgeting, evaluation, and MIS (Management Information System).
- Budgeting
Definition: Budgeting is formulating financial and numerical plans for a specific period.
Types of Budgeting:
Type | Description |
Historical Budgeting | Based on previous data |
Zero-Based Budgeting (ZBB) | Each item starts from zero justification |
MBO-Based Budgeting | Linked with objectives |
PERT Budgeting | Evaluates based on activities and timelines |
One-Liner Revision for MCQ Exams:
- Planning is future-oriented and the first step in management.
- Organizing builds structure and authority relationships.
- Staffing ensures the right person is in the right job.
- Directing is guiding and motivating human resources.
- Controlling is measuring performance and correcting deviations.
- Coordinating integrates group efforts for efficiency.
- Reporting provides feedback and supports transparency.
- Budgeting is planning expressed in numerical terms.
