FUNCTIONS OF MANAGEMENT
Different experts have classified functions of management.
According to George & Jerry, “There are four fundamental
functions of management i.e. planning, organizing, actuating
and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to
organize, to command, & to control”.
Whereas Luther Gullick has given a keyword
’POSDCORB’ where P stands for Planning, O for
Organizing, S for Staffing, D for Directing, Co for Co-
ordination, R for reporting & B for Budgeting. But the most
widely accepted are functions of management given by
KOONTZ and O’DONNEL
Planning, Organizing, Staffing, Directing and Controlling.
PLANNING
Definition or Explanation- Predetermining a course of action for
accomplishing organizational objectives. It involves- • What is to be
done, when it is to be done, How it is to be done.
• Determining of long and short range objectives. • Development of
strategic and courses of actions to be followed for the achievement of
these objectives.
• Formulation of procedures, policies and rules etc. for the implementation
of strategies and plans.
ORGANIZING
Definition or Explanation- Arranging the relationships among work units for
accomplishment of objectives and the granting of responsibility and authority to
obtain those objectives. It involves-
• Identification of activities required for the achievement of objectives and
implementation of plans.
• Grouping of activities.
• Assignment of Jobs to employees.
• Delegation of Authority.
• Establishment of a network of coordinating relationships
As one of the five functions of management, Henri Fayol divided “organizing” into five
subcategories. These five functions of management are still important in organizations
today.
The first of the five functions of management, Henri Fayol mentioned was
“specialization”; if every employee is allowed to use their individual skills this will be
advantageous to their area of expertise.
Secondly he mentioned “unity of command”, in which an employee is answerable to
one manager only.
Thirdly the “formal chain of communication” is linked to this so that the employee will
know how and with whom they will have to communicate.
The fourth category is “unity of direction”; all employees must be aware of the
organization’s strategic objectives.
The fifth category is “authority and responsibility” in which managers have the
authority to give orders.
STAFFING (HRM) Definition or Explanation-
Selecting and training people for the positions in the organization. It involves-
•Manpower planning involving determination of number and the kind of personnel
required.
•Recruitment for attracting suitable number of potential employees to seek jobs in
the enterprise concerned.
•Selection of the most suitable person for the jobs under considerations.
•Placement, Induction and Orientation.
•Transfers, Promotions, Termination and Layoff.
•Training and Development of employees
DIRECTING Definition or Explanation- Creating an
atmosphere that will assist and motivate people to achieve
desired end results It involves-
•Communication
•Motivation
•Leadership
CONTROLLING Definition or Explanation
Establishing, measuring, and evaluating performance of activities toward
planned objectives.
Sub-Functions Involves-
•Measurement of performance against predetermined goals.
•Identifications of deviations from these goals.
•Corrective actions to rectify deviations.
