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Career development What Are the 4 Basic

Functions of Management?

What Are the 4 Basic

Functions of Management?
Written by Indeed Editorial Team
Updated April 10, 2025

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Video: Top Leadership Styles -

De5nitions & Examples

Jenn, an Indeed Career Coach, explains

the top leadership styles in
management and how to identify the
one that's right for you and your team.

No matter the type of company, all managers

share four core responsibilities: planning,
organizing, leading, and controlling. When done
eCectively, these four basic functions of
management can help you succeed in your career
as a manager while contributing to the
organization's success.

In this article, we discuss the four basic functions

of management and highlight their signiGcance in
achieving organizational objectives.

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What are the four basic

functions of management?

There are four generally accepted functions of

management: planning, organizing, leading and
controlling. These functions work together in the
creation, execution and realization of
organizational goals . The four management
functions can be considered a process in which
each builds on the previous function.

To be successful in their roles, managers should

follow the four basic functions of management in
the proper order. First, they need to develop a
plan, organize their resources and delegate
responsibilities to employees according to the
plan. Then, they must lead others to carry out the
plan eLciently. Finally, they must evaluate the
plan’s eCectiveness as it is being executed and
make any necessary adjustments.

1. Planning

In the planning stage, managers establish

organizational goals and create a course of action
to achieve them. During the planning phase,
management makes strategic decisions to set a
direction for the organization. Managers can
brainstorm alternatives to achieve the objective
before choosing the best course of action. While
planning, managers typically conduct an in-depth
analysis of the organization’s current state of
aCairs, considering its vision and mission and
evaluating the resources available to meet
organizational objectives .

While planning, managers evaluate internal and

external factors that may aCect the execution of
the plan, such as economic growth, customers
and competitors. They also establish a realistic
timeline for achieving the goal or goals based on
the organization’s available Gnances, personnel
and resources. Managers may take additional
steps, such as seeking approval from other
departments, executives or their board of
directors before proceeding with the plan. There
are several approaches to planning:

Strategic planning: This type of planning is

often carried out by an organization’s top
management and usually creates goals for the
entire organization. It analyzes threats to the
organization, evaluates its strengths and
weaknesses and creates a plan for how it can
best compete in its environment. Strategic
planning often has a long timeframe of three
years or more.

Tactical planning: This type of planning is the

shorter-term planning of an objective that will
take a year or less to achieve. Tactical planning
is often carried out by an organization’s
middle management and aimed at a speciGc
area or department of the organization, such as
its facilities, production, Gnance, marketing
or personnel.

Operational planning: Operational planning

involves using tactical planning to achieve
strategic planning and goals. It creates a
timeframe for implementing a portion of the
strategic goal operationally.

2. Organizing

The purpose of the organizing step of the four

basic functions of management is to allocate
resources and assign tasks to personnel to
achieve the goals set during the planning stage.
Managers often must collaborate with other
departments, such as Gnance and human
resources, to manage budgets and staC
eCectively. During the organizing phase,
managers aim to create a productive work
environment by aligning employees' roles with
their skills and motivation.

Managers should clearly explain each employee’s

responsibilities when assigning tasks and ensure
they understand their roles. To enhance
engagement and productivity , managers
should balance the workload and provide
suLcient time for employees to complete their
tasks. Here are some examples of the organizing
function:

If the company’s brand manager works part-

time and the organization’s goal is to launch a
new advertising campaign for a product, the
brand manager may not take on the
signiGcant responsibility of managing the
campaign besides their regular duties. The
company may hire an advertising agency to
help promote the product.

If a company’s sales in a geographic area have

grown exponentially, management may plan to
split the territory in two and need to divide the
current team working in the territory and hire
additional staC members as required.

3. Leading

Leading consists of motivating employees and

inUuencing their behavior to achieve
organizational objectives. It focuses on managing
people , such as individual employees, teams
and groups, rather than tasks. Though managers
may direct team members by giving orders and
directing them to their team, successful leaders
usually connect with their employees by using
interpersonal skills to encourage, inspire and
motivate team members to perform to the best
of their abilities.

Managers can foster a positive working

environment by identifying moments when
employees need encouragement or direction and
using positive reinforcement to praise employees
when they have done their jobs well. Managers
usually incorporate diCerent leadership styles
and change their management style to adapt to
various situations. Examples of situational
leadership styles include:

Directing: The manager leads by deciding with

little input from the employee. This is an
eCective leadership style for new employees
who need a lot of initial direction and training.

Coaching: The manager is more receptive to

input from employees. They may pitch their
ideas to employees to work cooperatively and
build trust with team members. This leadership
style is eCective for individuals who need
managerial support to develop their skills
further.

Supporting: The manager decides with team

members but focuses more on building
relationships within the team. This leadership
style is eCective for employees with fully
developed skills but sometimes inconsistent in
their performance.

Delegating : The leader provides minimal

guidance to employees and is more concerned
with the project's vision than day-to-day
operations. This leadership style is eCective
when employees can work and perform tasks
on their own with little guidance. The leader
can focus more on high-level goals than on
tasks.

4. Controlling

Controlling is the process of evaluating the

execution of the plan and making adjustments to
ensure that the organizational goal is achieved.
During the controlling stage, managers perform
tasks such as training employees as necessary
and managing deadlines. Managers monitor
employees and evaluate the quality of their work.
They can conduct performance appraisals and
give employees feedback, providing positive
remarks on what they are doing well and
suggestions for improvement. They may also
oCer pay raise incentives to high-performing
employees. Managers may need to make
adjustments such as:

Budget adjustments: Managers oversee the

budget and resources to ensure they are used
eLciently and within Gnancial limits. For
instance, if a manager notices that a project is
exceeding its budget but is unsure of the cause,
she must investigate whether the
overspending is due to a general issue or if a
speciGc department is responsible. Once the
source of the overspending is identiGed, the
manager needs to take corrective action to
reduce expenditures and make necessary
adjustments to balance the budget.

Sta>ng adjustments: Managers may need to

make challenging decisions such as whether to
reassign an employee who produces low-
quality work to a diCerent task or dismiss them
from a project. They may also need to add
additional team members to meet an
organizational goal if they conclude that the
team is understaCed. If this is the case, they
may also need to consult with organization
executives to secure more funding.

Frequently asked questions

Is decision-making a function of
management?
Yes, decision-making is a function of
management. Some people include decision-
making within the planning stage of the four
functions of managment, while others classify
it as its own function.

Which management function is

most essential to a business'
success?
All four management functions are equally
important to a business' success. A manager
may spend more time on one function than the
others depending on the current state of a
business, but all the functions work together to
help a business conduct its operations
smoothly.

Which management function is

most challenging for a manager to
conduct?
While the diLculty of conducting management
functions is subjective, a manager may
experience challenges with the leading
function. This is because it involves
coordinating teams and encouraging
employees to complete their assigned tasks to
the organization's standards. The leading
function may also be the most challenging
because a manager may aim to adapt their
leadership style regularly to achieve desirable
results.

The information on this site is provided as a

courtesy and for informational purposes
only. Indeed is not a career or legal advisor
and does not guarantee job interviews or
o<ers

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