Reading: Five Functions of Management

Business Management for Every Enterprise

Unit 1

Five Functions of Management

Five Functions of Management

Managers’ jobs are organized around five functions

1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling

Managers determine what needs to be done, who will do it, and what resources will be needed

The resources of an organization include people, money, facilities, equipment, and materials.

Employees are the most important resources.

Planning

The first step for managers is to develop a plan.

Planning is the process concerned with defining goals for a company’s future direction and determining the missions and resources to achieve those targets. To meet objectives, managers may develop plans, such as a business plan or a marketing plan.

Organizing

Once the plan is in place, the next management decision is how to organize each type of resource to make sure the plan can be accomplished. 

Process of determining the activities to be performed, such as assigning managerial authority and employee responsibilities.

Organizing is a function by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility.

Staffing 

A function of finding the right person for the right position at the right time.

- Recruitment
- Selection
- Placement
- Training  

Leading

A process of supervising, directing, and communicating with sub-ordinates to achieve organizational objectives.

Leading influences the behavior of human resources.

Controlling

Controlling involves establishing standards of performance, measuring current performance comparing it with established standards and taking corrective actions.

Controlling helps to ensure everything is done according to pre-determined goals.