1. Functions of Management
Management
It includes:
Management of business and profit making private and government run organizations.
Management of non-profit making organizations.
Management of trusts, societies, associations, charitable organizations.
Management of governmental organizations.
Management of NGOs.
Management of educational organizations e.g. universities, colleges, schools.
Management of day care units.
Management of hospitals and other health care organizations.
Management of sports related organizations and clubs.
Management of religious organizations.
Management for any organization is a function of organizing and channeling the people together to accomplish desired
goals.
In common understanding, management is also referred to the body or group of persons who perform the various
functions of management.
Mary Parker Follett was the first to define management as the art of getting things done through people.
Hierarchical Levels of Management
Top management (including the members of the board of directors of the company- responsible for strategic
management).
Senior management (or upper management; normally, the heads of various departments- responsible for
operations management).
Middle management (responsible for operational management).
Junior or lower management (they include supervisors, team leaders or, foreman etc- responsible for
transaction control)
Functions of Management or Management Functions
Management consists of the functions given below. It is based on Henri Fayol's thinking on the functions of
management.
1.
2.
3.
4.
Planning: generating plans of action for immediate, short term, medium term and long term periods.
Organizing: organizing the resources, particularly human resources, in the best possible manner.
Staffing: positioning right people right jobs at right time.
Directing (includes leading, motivating, communicating and coordinating): Communicate and coordinate with
people to lead and enthuse them to work effectively together to achieve the plans of the organization.
5. Controlling (includes review and monitoring): evaluating the progress against the plans and making corrections
either in plans or in execution.
Every manager at every level of hierarchy of an organization has to carry out these management functions irrespective
of the nature and size of the organization. The functions are interrelated and these may be done by a manager quite
concurrently. This means that the functions are not necessarily carried out sequentially and it is not necessary to
complete one function fully before the next function is undertaken.
Each of these functions is explained in some detail below.
1. Planning
Planning is decision making process.
It is making decisions on future course of actions.
Planning involves taking decisions on vision, mission, values, objectives, strategies and policies of an
organization.
Planning is done for immediate, short term, medium term and long term periods.
It is a guideline for execution/implementation.
It is a measure to check the effectiveness and efficiency of an organization.
2. Organizing
Organizing involves determination and grouping of the activities.

2. Designing organization structures and departmentation based on this grouping.
Defining the roles and responsibilities of the departments and of the job positions within these departments.
Defining relationships between departments and job positions.
Defining authorities for departments and job positions.
3. Staffing
It includes manpower or human resource planning.
Staffing involves recruitment, selection, induction and positioning the people in the organization.
Decisions on remuneration packages are part of staffing.
Training, retraining, development, mentoring and counseling are important aspects of staffing.
It also includes performance appraisals and designing and administering the motivational packages.
4. Directing
It is one of the most important functions of management to translate company's plans into execution.
It includes providing leadership to people so that they work willingly and enthusiastically.
Directing people involves motivating them all the time to enthuse them to give their best.
Communicating companies plans throughout the organization is an important directing activity.
It also means coordinating various people and their activities.
Directing aims at achieving the best not just out of an individual but achieving the best through the groups or
teams of people through team building efforts.
5. Controlling
It includes verifying the actual execution against the plans to ensure that execution is being done in accordance
with the plans.
It measures actual performance against the plans.
It sets standards or norms of performance.
It measures the effective and efficiency of execution against these standards and the plans.
It periodically reviews, evaluates and monitors the performance.
If the gaps are found between execution levels and the plans, controlling function involves suitable corrective
actions to expedite the execution to match up with the plans or in certain circumstances deciding to make
modifications in the plans.
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