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Functions of Management

In all organizations the same essential managerial functions are carried out. These are:

  • Planning
  • Organizing
  • Leading
  • Controlling

All managers perform these functions. That’s why we can call them general management functions. Let’s define each one of them:

Planning: Planning involves determining organizational goals and means to Functions of Managementreach them. Managers plan for three reasons: (1) to establish an overall direction for the organization’s future, such as increased profit, expanded market share, and social responsibility (2) to identify and commit the organization resources to achieving its goals; and (3) to decide which tasks must be done to reach those goals.

Organizing: After managers have prepared plans, they must translate those relatively abstract ideas into reality. Sound organization is essential to this effort. Organizing is the process of deciding where decisions will be made, who will perform what jobs and tasks, and who will report to whom in the company. By organizing effectively, managers can better coordinate human, material, and information resources. An organization’s success depends largely on management’s ability to utilize those resources efficiently and effectively. Organizing involves creating a structure by setting up departments and job description.

Leading: After management has made plans, created a structure, and hired the right personnel, someone must lead the organization. Leading involves getting others to perform the necessary tasks by motivating them to achieve the organization’s goals. Leading isn’t done only after planning and organizing end; it is crucial element of those functions.

Controlling: The process by which a person, group, or organization consciously monitors performance and tasks corrective action is controlling. Just as a thermostat system sends signals to a heating system that the room temperature is too high or too low, so a management control system sends signals to managers that things aren’t working out as planned and that corrective action is needed.

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