10 Functions of Management

Suresh Kumar Turka

Introduction

Management functions represent the activities that managers should perform to achieve organisational goals. In simple words, management functions are prescriptive in nature. The various functions of management constitute a unified body and are commonly referred to as a process of management. Process of management is circular in nature, as functions are interrelated and performed one after the other. Basically, management comprises five functions, viz., Planning, Organising, Staffing, Directing, and Controlling. But, it is notable that all the functions do not take place in a sequence, or preset timetable. At a time one or more functions may be undertaken. But, each function leads to others. Each function may not be equally important to all the firms as their nature of business may be different. Many scholars feel that coordination should be the first function of management.

Meaning and Nature of Management

Management is a process of conducting different functions through communication, motivation and leadership to effectively and efficiently achieve the desired results.

1. Goal Oriented Process: – Management is required when some goals have to be achieved. A manager on the basis of his knowledge and experience tries to achieve the goals which are decided in advance. Hence, management is a goal-oriented process.

2. Management is all Pervasive: – Management is required for each and everything. Anything minus management is nothing. All types of activities whether it is business or non-business required management. It means management is necessary to conduct any type of activities. Hence, management is pervasive or universal.

3. Multidisciplinary: – Management is multidisciplinary means that it is deeply indebted to various other disciplines from which it has gained considerably. Management came to develop its own thoughts and principles to fulfill the needs of the management of different organisations. Integrated knowledge of various subjects like psychology, Sociology, anthropology, Economics has made a valuable contribution to the management.

4. Continuous Process: –The various managerial activities cannot be performed once for all, but it is a continuous process. A manager is busy sometimes in doing one managerial activity and at other times some other activity.

5. Group Activity: –It means that, it is not a single person who manages all the activities of an organisation but it is always a group of persons. Hence, management is a group effort. Mostly, in big organisations management is defined as a group activity because many persons are associated in different activities.

6. Dynamic Function: –Management is a dynamic activity as it has to adjust itself to the regularly changing environment. In this context, it can be rightly said that nothing is ever lasting in management.

Functions of Management

The followings are the functions of management

(1) Planning: – Planning is a basic requirement and important function of management process. Planning is the determination of a future course of action to achieve a desired result. Under planning, it is ascertained that what should be done, how it should be done and who should do it. Before starting of a job all above mentioned activities must be considered otherwise, the objectives of a business cannot be achieved. Planning is a long process and under this the following steps are taken:

1. Setting Objectives: – This is the first step in planning process. In this the objectives are laid down after identifying the opportunities available to a business organisation. Objectives are the key point of the process of planning. Objectives should be clear, definite and simple.

2. Developing Premises: – In this various factors which affect the activities of an organisation are determined. These are the external and internal factors. External factors have no control and may be the policy of the government, competition, change in customer habit etc. On the other hand internal factors include capital, labour, machine, raw material etc. Planning premises point out the business environment in which the plans will operate.

3. To Identify the alternative courses of action: – The next step in planning will be choosing the best course of action. There are a number of ways of doing a thing. All the available alternatives should study and then a final selection will be made. Best results will be achieved only when best way of doing a work is selected.

4. Evaluating alternative courses: – After choosing a course of action, the next step will be to make an evaluation of those courses of actions. Evaluation will involve the study of performance of various actions. Various factors will be weighed against each other. A course of action may be suitable but it may involve huge investments and the other may involve fewer amounts but it may not be very profitable. The evaluation of various action patterns is essential for proper planning.

5. Selecting the best alternative: – After analysis of different alternatives the best one is selected. Keeping in view the uncertainties of future it is justifiable to select more than one good alternative course. In case if one alternative is fails, the other may be implemented and failure may be averted.

6. Implementing the plan: – The planning should be put into action so that business objectives may be achieved. The implementation will require establishment of policies, procedures, standards and budgets. These tools will enable a better implementation of plans.

7. Follow-up action: – The process of planning does not end with the implementation of plans. The plans are formulated for future which is uncertain. There must be a constant review of the planning to ensure the success.

Importance of Planning

  • Co-ordination in the activities of the organisation
  • Higher degree of rationality and order in organisation
  • Economy in Business
  • Help in achieving the Management by Objectives
  • Help in minimizing the future uncertainties
  • Effective Control

(2) Organising: – In order to make the planning functional, a structure of roles needs to be framed and sustained. The process of creating this structure of roles is known as organising. Planning is just to put some idea in writing, but to convert that idea into reality, a group of people is needed. Further, to streamline the activities of this group of people, organising is required. Under this, the whole project is divided into various small jobs, to assign these jobs to designated, to unite various jobs into one department, to clarify the rights and duties of employees to be appointed at various posts, and to define relationship among various posts.

Following steps are taken to complete the organising function of management:

1. Identification and Division of Work: – The first step of organising is the identification and division of work. At this step, the total work is divided into various activities like purchase of raw material, production, marketing, financing, research etc.

2. Departmentalization: – The deapartmentalisation of activities starts once the various activities have been designed to achieve the objectives of the company. The activities of the same nature are grouped together and assigned to a particular department like purchase department.

3. Assignment of Duties: – At this stage, the responsibility of each individual or post is decided, e.g., the purchase manager will be given the task of purchasing goods, the sales manager will be given the work of sale of goods, the advertising manager will be given the work of advertisement and in the same way the finance manager will be given the responsibility of making financial arrangements.

4. Establishing Reporting Relations: – When two or more than two persons work for achieving of common goals their inter relationship must be defined. Every individual should know who his superior is and superior must know who his subordinates are? For example, the purchase manager will be the superior for all the employees of the purchase department; they will receive orders from him and will also be responsible to him.

Basic Requirement in Organisational Structure

  • To set objectives
  • To motivate and communicate
  • To analyse, appraise and measure performance
  • To develop human resources
  • To organise

(3) Staffing: –It refers to knowing about the manpower requirements in the organisation and filled the various posts with suitable employees. An organisation may succeed only if it has trained staff in each and every department and this work is done by staffing.

Following steps are taken to complete the staffing function of management:

1. Estimating the manpower requirements: – Staffing process begins with the estimation of manpower requirement which means finding out number and type of employees needed by the organisation in near future. Manpower requirement is not only to find out number of people needed but also the type of people.

2. Recruitment: – It refers to the process of inducing the people to apply for the job in the organisation. After assessing the number and type of employee required, the manager tries that more and more people should apply for the job so, that the organisation can get more choice and select better candidates. Recruitment is a positive process.

3. Selection: – It refers to choosing the most suitable candidate to fill the vacant job position. The selection is done through a process, which involves test, interviews, etc. In selection number of selected candidate is less than the number of rejected candidates that is why selection is called negative process also.

4. Placement and Orientation: – Placement refers to occupying of post by the candidate for which he is selected. After selection the employee is given appointment letter and is asked to occupy the vacant job position. Orientation refers to introduction of new employees to the existing employees. Large organisations organise orientation programmes to familiarize the new employees with the existing whereas in small organisations superior takes the new employees on round and introduces him to the existing employees.

5. Training and Development: – To improve the competence of employees and to motivate them it is necessary to provide training and development opportunities for employees so that they can reach to top and keep improving their skill. Organisations may have in house training centres or arrange with some institutions to provide training for their employees. Training and development not only motivate employees but these improve efficiency of work also.

Importance of Staffing

  • To fill up the gap between organisational design and human power
  • To utilize all physical resources through human resources
  • Development of executives and non executives employees
  • Helpful in performance appraisal

(4) Directing: – It refers to instructing, guiding, communicating and inspiring people in the organisation. Under directing following four activities are included:

  • Supervision
  • Communication
  • Leadership
  • Motivation

(i) Supervision: – It refers to monitor the progress of routine work of subordinates and guiding them properly. Supervision is an important element of the directing function of management. Supervision has an important feature that face to face contact between supervisor and his subordinate is a must,

(ii) Communication: –It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him understand them. A manager has to continuously tell his subordinates about what to do, how to do, and when to do various things. Also, it is very essential to know their reactions. To do all this it becomes essential to develop effective communication facilities. Communication by developing mutual understanding inculcates a sense of cooperation which builds an environment of coordination in the organisation.

(iii) Leadership: – It refers to influencing others in such a manner to make them do work what the leader wants them to do. Leadership plays an important role in directing. Only through this quality, a manager can persuade, create trust and passion among his subordinates.

(iv) Motivation: – It refers to that process which excites people to work for achievement of desired objective. Among the various factors of production, it is only the human factor which is dynamic and provides mobility to other physical resources. Thus, it becomes essential to motivate human resource to keep them dynamic, aware and willing to perform their duty. Both monetary and non-monetary incentives are given to employees for motivation.

(5) Controlling: –It refers to bringing the actual results closer to the desired results. Under this it is monitor whether the jobs are being performed in accordance with the set plans or not. The actual performance is matched with predetermined standards and the deviations are found. After this corrective action is taken for negative deviations so that the difference between actual result and desired results can be minimised. Thus, with the implementation of controlling process all the hurdles removed which are coming in the way of achievement of objectives. The controlling process has the main steps:

1. Setting performance standards: – Every enterprise plans its activities in advance. On the basis of plans, the objectives and goals of every department, branch, etc. are fixed. These, goals are converted into quantity, value, man hour etc. These are to be achieved in future. There may also be qualitative goals. The achievement of various targets is made the responsibility of specific persons. The levels of achievement are also decided in advance.

2. Measurement of actual performance: – The second step in controlling process is the measurement of performance. The actual performance is measured against the standards set. This will enable management to determine whether the work is being done according to plans or not.

3. Comparison of actual performance with standards: – The next step in control process is the comparison of actual performance with the standards set. When the actual performance is not up to the level then causes for it should be pin-pointed. Necessary steps are taken so that performance is not adversely affected once again. If no efforts are made to rectify the weak areas then the whole control process will be futile. Whenever the performance is low than the standards, the reasons for it should immediately be found.

4. Taking corrective action: – The last but most important step in controlling process is of taking corrective action. Whenever the performance is less than the standards, efforts should be made to rectify it. Whatever the reasons for low performance, efforts are made to achieve organizational goals. No control process can automatically rectify the mistakes in a system. It is the action which is required to set the things right.

Importance of Control

  • Control is the basis of planning
  • Basis for appraisal
  • Control ensures performance according to predetermined standards
  • Assistance in co-ordination
  • Assistance in decentralisation
  • Effective control leads to greater organisation effectiveness

Conclusion

The various functions of management constitute a unified body and are commonly referred to as a process of management. Process of management is circular in nature, as functions are interrelated and performed one after the other. Each function leads to others. Each function may not be equally important to all the firms as their nature of business may be different.

 

References:

  • Tripathi P.C. Principles of Management, Tata McGraw Hill, 2008.
  • Kumar Arun and Rachna Sharma, Principles of Management, Atlantic publishers, 2000
  • Pujari Saritha, “Five functions of management”
  • Pakhre Jayshree, “Management concepts- the four functions of management”
  • Tim Barnett, “Management functions”
  • Ryan, “Functions of management- The importance of top 5 functions, 2014