Functions of Management

Planning
• Planning is the most basic function of management.
• It is deciding in advance what to do and how to do when to do and
by whom it is to be done.
• It bridges the gap between where we are and where we want to go.
 What is a Plan

• It is the predetermined course of action which provides purpose and

direction
• It needs a systematic process for achieving the organizational goals
• It answer to the questions like what, when, where and how
• It bridge the gap between where they are and where they want to be
The essential element of planning are vision, missions, goals, objectives,
strategy and action.

• Vision- A Vision Statement describes the desired future position of the

company.
• Mission – Mission is a general statement of how you will achieve your
vision.
• Goals – Goals are statements of what needs to be accomplished to
implement the strategy.
• Objectives – Objectives are specific actions and timelines for achieving
the goal.
• Strategies - Strategies are a series of ways of using the mission to achieve
the vision.
 Importance of Planning

Let’s understand why planning is important for the organization.

• Planning provides directions
• Planning reduces the risks of uncertainty
• Planning reduces overlapping and wasteful activities
• Planning promotes innovative ideas
• Planning facilitates decision making
• Planning establishes standards for controlling
 Organizing
• Organising involves division of work among people whose efforts must be
coordinated to achieve specific objectives and to implement pre-determined
strategies.
• It is the backbone of management. After the objectives of an enterprise are
determined and the plan is prepared, the next step in the management process is to
organize the activities of the enterprise.
• Organization is the process of identifying and grouping of the works to be performed,
defining and delegating responsibility and authority and establishing relationships for
the purpose of enabling people to work most efficiently
- Louis A. Allen
- Division of work
- Assigning of duties and responsibilities
- Delegation of authority and power
- Allocating resources
• During the organizing process, managers coordinate employees,
resources, policies, and procedures to facilitate the goals
identified in the plan.
 Importance of Organising
The following points highlight the crucial role that organizing plays in any business
enterprise
1. It facilitates efficient management - Organising is necessary for the performance of other
functions of management .Poor organisation may result in duplication of work and efforts.
2. It facilitates coordination and communication - Organisation creates a clear cut
relationships between the departments and helps in laying down balanced emphasis on
various activities. It also provides channels of communication and coordination of activities
of different departments.
3. It facilitates growth and diversification - Sound organization helps in the growth and
expansion of the enterprise by facilitating its efficient management .It also increases the
capacity of the enterprise to undertake more activities.
4. It ensures optimum use of resources - Organising leads to the optimum use of all material,
financial and human resources. It matches the jobs with the individuals and vice versa and
ensures that job position is clearly defined. It minimizes confusion and wastage of resources.
 Leading / Directing

• The directing function is concerned with leadership,

communication, motivation, and supervision
• Directing means "Activating deals with the steps a manager takes
to get subordinates and others to carry out plans".
Newman and Warren.
• Directing is nothing but guiding and leading the people in an
organization. It is not just giving instructions by a superior to them
sub-ordinates but also is a process of supervising, guiding and
motivating the latter to achieve the organizational goals.
 Importance of Directing

• Direction initiates actions to get the desired results in an organisation.

• Direction attempts to get maximum out of employees by identifying their
capabilities.
• Direction is essential to keep the elements like Supervision, Motivation,
Leadership and Communication effective.
• It ensures that every employee work for organisational goals.
• Coping up with the changes in the Organisation is possible through effective
direction.
• Stability and balance can be achieved through directing.
 Elements of Directing
• Allthe activities related to directing can be categorized into 4 different
elements of directing. They are Supervision, Communication, Motivation and
Leadership.
• Supervision - Supervision is an important element of directing. It implies
overseeing the work of subordinates in order to guide and regulate their
efforts
• Communication - It is the process of passing information view point, facts,
ideas , opinion and understanding from one person to another.
• Motivation -
• Leadership - Leadership may be defined as the process by which a manager
guides and influences the work of his subordinates.
 Controlling

• "Controlling is determining what is being accomplished - that is, evaluating

performance and, if necessary, applying corrective measures so that performance
takes place according to plans".
- Terry and Franklin.
• Controlling is seeing that actual performance is guided towards expected
performance.
• The efficient system of control helps to predict deviation before they actually occur.
• Controlling ensures that there is effective and efficient utilization of organisational
resources so as to achieve the organisational goals.
• Controlling has two basic purposes
✓ It facilitates coordination
✓ It helps in planning.
 Process of controlling

• Establishment of standard performance.

• Measurement of actual performance.
• Measuring actual performance with the pre-determined standard
and finding out the deviations.
• Taking corrective action.
 Relation between Planning and Controlling

• Control is always based on Planning- Every manager uses certain Standards for
measuring the performance which are laid down by planning. So planning is a
pre-requisite for controlling.
• Planning without Controlling is meaningless and control without Planning is
blind- Planning identifies the goals and determines the ways to achieve them
whereas control ensures attainment of goals by evaluating performance and
taking corrective action.
• Planning and controlling are both forward looking and backward looking
 Importance of Controlling
• A Good control system provides timely information to the manager which is very
much useful for taking various operations.
1) Basis of future action - Control provides the basis for future actions. It will reduce
the chances of mistakes being repeated in future by suggesting preventive steps.
2) Facilitates decision making- It helps in taking a right decision
3) Facilitates discipline and order – The existence of control system has a positive
impact on the behaviour of the employees.
4) Facilitates Coordination - Control helps in Coordination of the activities of various
departments of the enterprise. It provides them unity of direction.
5) Facilitates motivation – A control system is most effective when it motivates
people to high performance.
6) Effective plan Implementation - Control is the only means to ensure that the plans
are being implemented
THANK YOU