The Functions of Management

What can managers do to be effective and efficient? The management process, properly executed, involves a wide variety of activities including planning, organizing, leading, and controlling. These activities, described below, are the traditional functions of management.


 Planning

Planning is specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals. Planning activities include analyzing current situations, anticipating the future, determining
objectives, deciding what types of activities the company will engage in, choosing corporate and business
strategies, and determining the resources needed to achieve the organization's goals. The outcome of the
planning process is the organization’s strategy.


Organizing

Organizing is assembling and coordinating the human, financial, physical, informational, and
other resources needed to achieve goals. Activities include attracting people to the organization,
specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success. The
outcome of organizing is an organizational structure.



Leading

Leading is stimulating people to be high performers. It is directing, motivating, and communicating with
employees, individually and in groups. Leading involves close day-to-day contact with people, helping to guide and inspire them toward achieving team and organizational goals. Leading takes place in teams, departments, divisions, and at the tops of entire organization. The outcome of leading is a high level of motivation and commitment.


Controlling

Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth functional controlling, monitors progress and implements necessary changes. When managers implement their
plans, they often find that things are not working out as planned. The controlling function makes sure that
goals are met. It asks and answers the question, "Are our actual outcomes consistent with our goals?" It makes adjustments as needed. Specific controlling activities are to set performance standards that indicate progress toward long-term goals; to identify performance problems by comparing performance data against standards; and to take actions to correct problems. Budgeting, information systems, cost cutting, and disciplinary action are just a few of the tools of control. Successful organizations, large and small, pay close attention to how well they are doing. They take fast action when problems arise, and are able to change as needed. The outcome of controlling is an accurate measurement of performance and regulation of efficiency and effectiveness.