Functions of Management

2
2.1 Introduction
2.2 Functions of Management
2.2.1 Planning
2.2.2 Organising
2.2.3 Staffing
2.2.4 Directing
2.2.5 Co-ordinating
2.2.6 Controlling
Comparative Study
Summary
Exercise

2.1 INTRODUCTION

We have discussed various management principles in the first chapter in detail. These
principles are very important in managing the organization. While achieving any objective, we need
to go through various functions. For example, in joint hindu family business, the KARTA is doing
proper planning for every work and for every member. The KARTA organizes various things which
are required to fulfill the objective. He also takes help of other members for support. For smooth
functioning of family as well as family business the KARTA directs, guides, coordinates and keeps
strict control on every task. Whatever, the KARTA is doing with the help of others is called as a
management. Similarly, the success of every business organization is an outcome of effective and
efficient management.
The tasks which are taken to achieve organizational goal is called management. Management
is a set of principles which relate to the various functions such as planning, organizing, staffing,
directing, coordinating, controlling etc. which are helpful in achieving organizational goals.

2.2 FUNCTIONS OF MANAGEMENT

According to L.A.Allen, "Management is what manager does". This definition focuses on the
role of manager in the form of different functions. The functions of manager start with planning and
end with controlling. But every function is interrelated with other function. They are inseparable in
nature. Management functions concern with all levels of management. Different management think-
ers have classified functions of management differently.
According to Henry Fayol, "To manage is to forecast and to plan, to organize, to command
and to control."

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 Luther Gullick has given a keyword 'POSDCORB' for management functions where P stands
for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting
& B for Budgeting. Reporting and Budgeting functions are summarized in the function called as
Controlling.
2.2.1 Planning:
Meaning:
Planning is the basic function of management. Every function of management is based on
planning. It includes deciding the things to be done in advance. Planning is an intellectual process of
logical thinking and rational decision making. It focuses on organization's objectives and develops
various courses of action. Designing a proper planning and implementing accordingly is the key of
achieving the objectives of an organization.
In short, planning is a detailed programme of future courses of action
Definition:
Following are some of the important definitions of planning:
1) Koontz and O'Donnell: "Planning is deciding in advance what to do, how to do it, when to do
it, and who is to do it. Planning bridges the gap from where we are and where we want to go it makes
possible things to occur which would not otherwise occur."
2) James Stoner: "Planning is the process of establishing goals and a suitable course of action
for achieving these goals."
Importance of Planning:
It is the fundamental function which gives an outline about where to go, how to go and reduces
the risk of uncertain future with the help of forecasting. The importance of planning is as follows:
1) Helps to set clear objectives:
Planning is concerned with setting objectives, targets, and formulating plans to achieve them.
It helps managers to analyze the present condition of the organization and on that basis to
identify the ways of attaining the desired position in future.
2) Provides path of action:
Planning ensures that the goals or objectives are clearly stated. They act as a guide and they
provide direction for doing the right things at the right time with right way. It helps employees
to know what organization has to do and what they must do for achieving the goals.
3) Planning improves performance:
It helps managers to improve future performances of employees by establishing objectives and
selecting a course of action. It is beneficial for the organization. Planning leads to efficient
working of the employees. Due to proper planning, the employees can work according to
timely guidelines. This improvement in performances results into higher profitability of the
organization.
4) Minimizes the risk:
Planning is based on forecasting technique. It is the process of looking into the future and
anticipating the future changes. By deciding in advance the tasks to be performed, planning

18
 shows the way to deal with changes and uncertain events. Changes or risks cannot be eliminated
totally but they can be anticipated and can be tackled with preventive measures. It minimizes
the risk of future or uncertainties of future.
5) Planning leads to optimum utilization of resources:
Organizational plans are prepared by taking into consideration the availability of resources
and proper allocation of resources for various activities. It also facilitates optimum utilization
of resources which brings higher efficiency and better results. One can avoid wastage of
resources by proper planning.
6) Helps in decision making:
There are various alternatives in front of the management. For achieving goals planning
helps the management to select the best alternative by considering all positive and negative
outcomes of all the alternatives. Decisions are taken after selecting alternative courses of
action to achieve a predefined goal. It helps the manager to take rational decisions.
7) Useful in setting the standards for controlling:
Planning set out standards for controlling. So, the actual performance can be compared with
the standards and managers can find out the deviation, if any between the actual and the
standard performance. Such deviation can be bridged by taking controlling steps. Therefore,
planning provides basis for control. It is also important for maintaining discipline at working
place of organization.
8) Facilitates Coordination of all activities:
Planning facilitates the coordination of activities. It reduces overlapping among activities.
All activities of business organization are closely linked with each other which is considered
in the process of planning. Sound planning inter-relates all the activities and resources of an
organization. Thus, various departments work as per the overall plan and coordination is
achieved.
9) Facilitates other management functions:
Every organisation functions towards achieving goal and goal is set at the planning stage.
Unless the plan is ready, other management functions such as organizing, staffing etc. cannot
be undertaken thus, planning facilitates all other functions of management.
10) Promotes innovative ideas:
Planning is the basic function of management. It is a process of decision making which
involves promotion of innovative ideas after critical thinking. Ultimately, these innovative
plans result into attainment of the goals of the organization. It is the most challenging activity
for the management as it guides all future actions leading to growth and prosperity of the
organization.

In short, planning plays vital role in every walk of life of an organization as well as of an
individual. Future is highly uncertain and the business environment is changing. With the help of
proper planning , the risks and uncertainties can be minimized definitely. Hence, planning is the
basic requirement of any organization for the survival, growth and success.

Prepare a plan for one day picnic of your class or field trip.

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2.2.2 Organising:
Meaning:
Organizing is the process of identifying, bringing the required resources together such as men,
money, material, machine and method, grouping and arranging them properly for achieving the
objectives. In planning, the management decides what is to be done in future whereas organizing
function decides the ways and means to achieve what has been planned. This function is important
for execution of the plans which have been prepared by top level management people.
The synchronization and combination of workforce, physical, financial and information
resources are established in the process of organizing.
Definitions:
The term 'organization' is used to denote the structure. It is a unit or a group of people who
come together to achieve a common goal whereas 'organizing' is a process and a function. Some of
the definitions are as follows:
1) Mooney and Railey: "Organization is the form of every human association for the attainment
of a common purpose."
2) Koontz and O'Donnell: "Organization involves the grouping of activities necessary to
accomplish goals and plans, the assignment of these activities to appropriate departments and the
provision of authority, delegation and co-ordination."
3) Theo Haimann: "Organizing is the process of defining and grouping the activities of the
enterprise and establishing the authority relationships among them. In performing the organizing
function, the manager defines, departmentalizes and assigns activities so that they can be most
effectively executed."
Importance of Organizing:
Organizing is concerned with grouping and assigning the organizational activities among
different departments and workforce. The importance of organizing can be stated as follows:
1) Facilitates Administration as well as Operation:
Organizing process leads to identify and to group the activities. Grouping and assigning the
activities is the task of administration whereas processing according to it is operational activity.
Thus, organizing facilitates administration as well as operation of the organization. Due to
proper grouping of the tasks and the employees, there is increase in production and reduction
in wastage. Duplication of work is restricted and effective delegation becomes possible.
2) Brings Specialization:
Organizational structure is a network of relationships in which the work is divided into units
and departments. This division of work helps in bringing specialization in various activities of
organization. Specialization in activities leads to increase in organizational efficiency.
3) Defines the Jobs Properly:
Organizational structure helps in putting right men on right job which can be done by selecting
people for various departments according to their qualification, skill and experience. This is
helping in defining the jobs properly which clarifies the role of every person.

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4) Clarifies Authority and Responsibility:
Organizational structure defines the role to every manager. This can be done by delegating
the authority to every manager and clarifying the way he has to exercise those powers. So that
misuse of powers does not take place. Well defined jobs and responsibilities helps in bringing
efficiency into managers working. This helps in increasing productivity.
5) Establishes Coordination:
This function helps in establishing co-ordination among different departments of organization.
It creates clear cut relationships among positions and ensures mutual co-operation among
individuals. Coordination or synchronization between all departments and different level of
managers is important for smooth functioning of organizational activities.
6) Helps for Effective Administration:
This function determines different positions, departments, activities and the roles are clearly
structured. The utmost care is taken while placing right person in right job with right authorities
and responsibilities. It is achieved through division of work and delegation of authorities. This
all leads to efficient and effective administration.
7) Helpful for Growth and Diversification:
The growth of every organization depends on its smooth and efficient functioning. Clearly
defined roles and responsibilities, coordination among all levels of management personnel
and use of appropriate control techniques bring efficiency at work place and organization
grows well. This is possible only when the organization structure is well- defined.
8) Creates Sense of Security:
Organizational structure clarifies the job positions. It clearly states the duties and responsibilities
of everyone. Everyone can work accordingly. Clarity in jobs and powers helps in increasing
mental satisfaction and it creates sense of security among the employees.
9) Scope for Innovation:
Organizing function clears the roles and activities to be performed. Employees can work by
using their new ideas. This provides enough space to the manager to develop talent and flourish
the knowledge. This scope for innovation into adopting new changes in methods of work is
possible only through a set of organizational structure.
10) Helps in Optimum Utilization of Resources:
This function provides different jobs to different employee according to the job specification.
Due to this, specialization of work becomes possible. This right workforce utilizes other
resources at its optimum level so that desired results are achieved within defined period.

Organize Teacher's Day in your college

2.2.3 Staffing:
Meaning:
Staffing is the function of execution according to plan and organizational structure. It is
the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and
retaining the best workforce. Overall growth and success of every venture is based on appropriateness
of staffing function. It is very challenging for organization to focus on best utilization of workforce

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by using their talents and skills, retaining them and arranging training and development programmes.
The function emphasizes managing human and not material or financial resources.
The need of staffing arises since the initial period of organization. Due to promotion, transfer,
business expansion, retirement, resignation, accidents, death of employee etc. vacancies are created
in organization. In this context, staffing function plays very important role in organization. Right
person at right job with right pay is the basic principle of staffing.
Definitions:
Following are some of the important definitions of staffing:
1) Theo Haimann: "The staffing function pertains to the recruitment, selection, development,
training and compensation of subordinate managers."
2) Luther Gullick: "Staffing is the whole personnel function of bringing in and training the staff
and maintaining favorable conditions of work".
3) S. Benjamin: "Staffing is the process involved in identifying, assessing. placing, evaluating
and directing individuals at work."
Importance of Staffing:
1) Effective Managerial Function:
Staffing is the key to effective performance of other functions of management such as planning,
organizing, directing and controlling. Competent workforce can work effectively in different
functional areas like production, sales, finance etc. The outcome of other functions is based on
the effectiveness of staffing.
2) Leads to Effective Utilization of Human Resources:
Staffing function leads to effective utilization of human resources i.e. workforce. Proper care
is taken at every stage such as recruitment, selection, placement, remuneration, training,
development etc. Excessive burden of work is avoided. Optimum utilization of human resources
results in improvement in performances and progress of organization.
3) Builds Cordial Relationship:
This function is helpful in building healthy relationships among all levels of employees in the
organization. A smooth human relation is the key to better communication and coordination
of managerial efforts in an organization.
4) Helps Human Resource Development:
Skilled and experienced employee is an asset of a business organization. Staffing helps to
inculcate the organizational culture into employees. It trains and develops the existing
workforce. It also ensures smooth functioning of all the managerial aspects of the business
organization.
5) Helps in Effective use of Technology and Other Resources:
Trained employees can use the latest technology, capital, material and methods of work
effectively. It helps in building competitive strength of the organization. It is also helpful in
improving standard of work and productivity in terms of quality and quantity.

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6) Improves Efficiency:
Training and development programmes are offered to the employees for self-development and
organizational development. Through proper selection, the organization gets quality employ-
ees and through proper training the performance level of the employees can be improved.
7) Long Term Effect:
Qualified, efficient and skillful workforce is always an asset of the organization. Proper
selection of employees leads the organization towards the path of success. Naturally, long
term positive effects can be observed on the efficiency of an organization.
8) Essential Contribution:
Staffing ensures the continuity and growth of the organization through development of
employees. Selection is based on the ability of the prospective employees. So that organization
can meet the future challenges wisely. Therefore, the contribution of the staff in their future
roles is taken into account in staffing function.
9) Provides Job Satisfaction:
Employees can be motivated through financial and non-financial incentives. Adequate
remuneration increases job satisfaction and morale of the employees. Training and development
programmes, fair remuneration and job security are the factors which are important in providing
job satisfaction.
10) Maintains Harmony:
In staffing process, individuals are recruited, selected and placed as well as their performance
is regularly appraised and promotions are given on the basis of merit. For this, criteria is made
and duly communicated to concerned employees. It brings peace and harmony in organization.
Activity :

What is the meaning of "Right Person at the Right Job" ? Discuss with your Teacher.

2.2.4 Directing
Meaning:
Directing is the soul of management function. It is the process of instructing, guiding, com-
municating, inspiring, motivating and supervising the employees to achieve predetermined goals of
an organization. Direction is a continuous function initiated at top level and flows to the lower level
through organizational hierarchy. It is a continuous managerial process that goes on throughout the
tenure of the organization. Director is the person who shows the correct path as well as guides the
employees in solving the problems wherever necessary. A few philosophers called direction as "Life
Spark of an Enterprise".
Definitions:
Following are some of the important definitions of directing:
1) Theo Haimann: "Direction consists of the process and techniques utilizing in issuing
instructions and making certain that operations are carried out as planned."
2) Earnest Dale: "Directing is what has to be done and in what manner through dictating the
procedures and policies for accomplishing performance standards".

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3) Urwick and Brech: "Directing is the guidance, the inspiration, the leadership of those men
and women that constitute the real case of responsibilities of management."
Importance of Directing:
Directing refers to a process or technique of instructing, guiding, inspiring, counselling,
overseeing and leading people towards the accomplishment of organizational goals.
Supervision is an integral part of direction function. The directer supervises employees by
observations, examining the reports and behaviour of employees.
On the basis of the above definitions, the importance of directing can be stated as follows:
1) Initiates Action:
Direction is the function which supports to activate the plans with the help of employees.
Every action is initiated through timely direction. Proper instructions are given to subordinates
while completing their assigned task. The managers direct the subordinates about what to do,
how to do, when to do and also to see that their instructions are properly followed.
2) Integrates Efforts:
Communication is one of the elements of direction. It helps in integrating the efforts of all the
employees and departments which results in achievement of organizational goal. Integration
of efforts is possible through persuasive leadership and effective communication towards the
accomplishment of organizational goals.
3) Means of Motivation:
While directing the subordinates, their opinions are also considered. A manager identifies the
potential and abilities of its subordinates and helps them to give their best. He also motivates
them by offering them financial and non-financial incentives to improve their performance. It
boosts the morale of subordinates.
4) Provides Stability:
Stability plays significant role in the growth and survival of the organization. Effective leadership,
communication, supervision and motivation develop co-operation and commitment among the
employees. It provides stability and creates balance among various departments and groups.
5) Coping up with the Changes:
Factors of business environment are always changing. Adapting to the environmental
changes is necessary for the growth of the organization. With the help of motivation, proper
communication and leadership, the employees can clearly understand the nature of change
and also the positive outcome of adopting to the change. For example, e-filing, use of Robots
at workplace etc.
6) Effective Utilization of Resources:
Direction involves assigning duties and responsibilities to everyone. Proper instructions and
systems are developed to avoid wastages, duplication of efforts etc. Subordinates are guided
to utilize the resources i.e. men, machine, materials, and money in the maximum possible way.
It helps in reducing costs and increasing profits.
7) Creates Team Spirit:
Direction focuses on motivating the subordinates for group efforts. Group efforts or team spirit
plays vital role in success of an organization than individual efforts. Therefore, the role of

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 manager as a director plays very important role in guiding and motivating the employees to
achieve the predetermined goals.
8) Explores Capabilities of Individuals:
Every individual has various capabilities or potentials in addition to their formal qualifications.
Direction helps to identify and utilize their abilities for best performance by encouraging and
motivating them just like a leader.
9) Increases Efficiency Level:
Guidance and motivation is given to subordinates to perform at their best level. Being a leader,
team spirit is created by the manager as well as proper techniques of supervision are used. It
works positively and results into enhancing the efficiency level of the whole organization.
10) Co-operation:
Co-operation is necessary for smooth flow of organizational activities. It should be created by
manager i.e. director from top level to the bottom level of management. Healthy cooperation,
team work and higher efficiency level lead to attainment of goals.
Thus, Directing to subordinates is a basic management function that includes building an
effective work climate through motivation.
2.2.5 Co-ordinating:
Meaning:
Co-ordination between different functions and all levels of employee is the essence of
organization success. It is an integration of different activities· which is essential for their smooth
flow. It establishes harmony among all the activities of an organization in achieving desired goal. In
an organization, a number of persons are working together to achieve a common goal. Their work
is closely linked with each other. Therefore, it becomes necessary to bring together the group efforts
and harmonise them carefully. Co-ordination will not exist unless efforts are taken to achieve it.
Co-ordination is the integration and synchronization of the efforts of a group so as to pro-
vide unity of action for organizational goals. It is a hidden force which binds all other functions of
management.
Definitions:
Following are some of the important definitions of co-ordination:
1) McFarland: "Co-ordination is the process whereby an executive develops an orderly pattern of
group efforts among his subordinates and secures unity of actions in the pursuit of a common purpose."
2) Henry Fayol: "To co-ordinate is to harmonise all the activities of a concern to facilitate its
working and its success."
3) Mooney and Reeley: "Co-ordination is orderly arrangement of group efforts to provide unity
of action in the pursuit of common goals."
Importance of Co-ordinating:
Need for co-ordination arises out of the fact that different elements and efforts of an organization
are to be harmonized and unified to achieve the common objectives. Importance of coordination can
be discussed as follows:

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1) Encourages Team Spirit:
In organizations, group of individuals work together. There may be existence of conflicts,
disputes between individuals, departments and employer and employees regarding
organizational policies, roles and responsibilities etc. Coordination arranges the work in such
a way that minimum conflicts are raised. It increases the team spirit at work place.
2) Gives Proper Direction:
Coordination integrates departmental activities for achieving common goal of the organization.
The work is arranged in a very systematic way. The interdependence of departments gives
proper direction to the employees.
3) Facilitates Motivation:
Coordination motivates the employees to take initiative while completing their assigned task.
An effective co-ordination increases efficiency and results into growth and prosperity of the
organisation. A prosperous organisation ensures job security, higher income, promotion and
incentives. Such monetary and non- monetary incentives provide job security and motivate the
employees for hard work.
4) Optimum Utilization of Resources:
Managers try to integrate all the resources systematically. It helps in utilizing all available
resources at its optimum level. Co-ordination also helps to minimize the wastage of resources
and control the cost of work.
5) Achieve Organizational Objectives:
Co-ordination leads to minimize the wastages of materials, idle time of employees, delay in
completion of targets, departmental disputes etc.to a great extent. It ensures smooth working
of the organization in the process of achieving the objectives of the organization.
6) Improves Relation:
Co-ordination develops cordial relations between all the levels of management of an
organization. Every department depends on functioning of other department. For example,
sales department works according to production department, Production department depends
on Purchase department and so on. Coordination helps the employees to build strong relations
among them and achieve the given targets.
7) Leads to Higher Efficiency:
With the help of optimum utilization of resources and effective integration of resources, the
organization can achieve high returns in terms of high productivity, high profitability as well
as can reduce the cost. Thus, co-ordination leads to higher efficiency.
8) Improves Goodwill:
Higher sales and higher profitability can be achieved due to synchronized efforts of
organizational people, strong human relations and lower costs. It directly results into creating
goodwill for organization in the market. It reflects on market value of shares as well as it helps
in building good image in society.
9) Unity of Direction:
Different activities are performed by different departments. Coordination harmornizes these
activities for achieving common goal of organization. Thus, coordination gives proper direc-
tion to all departments of the organization.

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10) Specialization:
All departments of the organization are headed by experts in their respective fields. The
specialized knowledge of these departmental heads helps in managerial decisions. It leads
organization to march towards growth and success in the competitive world of business.

Management cannot bring together the different elements into one harmonious whole without
proper coordination among all the members of the group.
According to Mary Parker Follett, Co-ordination is the '~Plus-value of the group".
2.2.6 Controlling:
Meaning:
Controlling function is required in all types of organizations whether profit making or non-
profit making. Similarly, it is performed at all levels i.e. top, middle and lower levels of management
Controlling is indispensable function of management. The effectiveness of planning function can
be determined with the function of controlling. Planning and controlling are major parts of the
management cycle.
Controlling is a function of comparing the actual performance with the predetermined stand-
ard performance. It measures deviation, if any, identifies the causes of deviation and suggests cor-
rective measures. The process of controlling helps in formulation of future plans also.
Process of controlling :

Comparison
Measurement and Finding
Standards of performace deviations
Antainment of

Corrective Analysing causes

action of deviation

Definitions:
Following are some of the important definitions of controlling:
1) Koontz and O'Donnell: "Managerial control implies the measurement of accomplishment
against the standard and the correction of deviations to assure attainment of objectives according to
plans".
2) Dale Henning: "Control is the process of bringing about conformity of performance with
planned action."
3) Philip Kotler: "Control is the process of taking steps to bring actual results and desired re-
sults closer together."

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Importance of Controlling:
Controlling is important in maintaining standards and to achieve desired goals effectively and
efficiently. It is a function of checking the performances of employees at every stage of their work in
process. The importance of controlling function in an organization is as follows:
1) Fulfilling Goals of Organization:
Controlling is the function of measuring the performances at every possible stage, finding out
the deviations, if any; and taking corrective actions according to planned activities for the
organization. Thus, it helps in fulfilling the organizational goals.
2) Making Efficient Utilization of Resources:
Various techniques are used by managers to reduce wastage of material and spoilage of other
resources. Standards are set for every performance. Employees have to follow these standards.
As the effect of this, the resources are used by employees in the most efficient and effective
manner so as to achieve organizational objectives.
3) Accuracy of Standards:
An efficient control system helps management in judging the accuracy of standards whether
they are accurate or not. Controlling measures are flexible to some extent. So after reviewing
them according to changing circumstances, they are revised from time to time which is bene-
ficial for checking performances accurately.
4) Motivates Employee:
After setting standards of checking performance, they are communicated to employees in
advance. Due to this, employees get an idea about what to do and how to do. Performances
are evaluated and on that basis employees are rewarded in the form of increment, bonus,
promotion etc. It motivates the employees to perform at their best level.
5) Ensures Order and Discipline:
Controlling is the function of order and maintaining discipline. It works for reducing
unprofessional behavior of the employees. Discipline is maintened by continuous checking of
performances by the superiors and preventive actions are taken to minimize the gap between
actual and standards.
6) Facilitates Co-ordination:
Control is a function in which the roles and responsibilities of all departmental managers
and the subordinates are designed clearly. Coordination between them helps to find out the
deviations in their respective departments and to use remedial measure for desired results of
the organization.
7) Psychological Pressure:
The performances are evaluated with the standard targets. The employees are very well aware
that their performance will be evaluated and they will be rewarded accordingly. This psychological
pressure works as a motivational factor for empolyees to give their best performance.
8) Ensures Organizational Efficiency and Effectiveness:
Factors of control include making managers responsible, motivating them for higher
performance and achieving departmental coordination. It ensures about organizational
efficiency and effectiveness.

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9) Builds Good Corporate Image:
Controlling function helps to improve the overall performance of the organization. Minimum
deviation in predetermined standards and actual performance results into the progress of
business. It can be achieved with the help of proper control. This builds good corporate image
and brings goodwill for the business.
10) Acts as a Guide:
Controlling function provides set of standard performance. Managers as well as subordinates-
work according to it. Wherever necessary, they can take the help of these standards and can
achieve desired results. Thus, controlling function acts as a guide for everyone. The steps
taken for controlling an activity guide the management while planning the future activities.

Comparative Study / Dstinguish between.

Planning Organizing Staffing Directing Coordinating Controlling
1 Meaning
Planning Organising The staffing Directing is Coordination Controlling is the
is deciding is the process function the guidance is orderly process of taking
in advance of defining pertains inspiration, arrangement steps to bring
what to do and grouping to the the leadership of group actual results and
how to do it, the activities recruitment, of those men efforts to desired results
when to do of the selection, and women provide unity closer together.
it and who is enterprise and development, constitute of action in
to do it. establishing training and the real case the pursuit of
the authority compensation responsibilities common goal.
relationships of of
among them. subordinate management.
managers.
2 Objective
To set goals To identify To appoint To direct the To ensure To ensure that
and choosing and bring right type of subordinates to harmony of the objectives
the means to together all people at the get the things efforts of the are achieved
achieve these required right posi- done in the right employees for according to
goals. resources. tions and the manner. smooth the plan.
right time. functioning of
organization.

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 Planning Organizing Staffing Directing Coordinating Controlling
3. Area of function
It includes It includes It includes It includes It includes It includes
setting identification recruitment, instructing, integration of setting up of
objectives by and grouping selection, guiding, efforts of top standards,
identifying of activities, training, inspiring, level, middle measurement,
the ways of assigning the development communicating level and and
attaining the work and and com- and lower level. comparison
goal and establishing pensation motivating with actual
selecting the the authority of human the human performance
best plan. relationship. resources. resources. and taking
corrective
steps
whenever
necessary.
4. Factors
Internal and Internal and Staffing Directing It is Internal and
external external is mostly is concerned harmonization external
factors are factors are concerned directly with of human factors are
considered in considered in with internal internal factors resources. taken into
planning arrangement factors. i.e. human account
process. of resources. resources. for taking
corrective
action.
5. Order
It is the It is based on It follows It follows It is an It is an end
basic first planning. organizing organising and important function of
function of function. staffing for element of management
management execution of organizing process.
process. planning. which follows
planning.

6. Resources
Planning is All available It is the It gives direction It is related It is related
done as per the resources i.e. process to the employees to human to all
requirement men, money, relating to regarding use of resources. organizational
and material, organization other resources. resources
availability of machine and of human which help
resources. method are resources. to achieve
arranged in goal of
a systematic organization.
manner.

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 7. Nature
It is continuous It takes It is a This continuous This is a It is the
in nature. It place till the continuous process is continuous process which
exists in the time all the process as it necessary in process starts once the
whole life of resources are deals with the process of related to all actual plan is
orgazation. collected and employees achievement of managerial executed.
arranged. i.e. human the goals. levels.
resources.
8. Level of Management
Top Top and Middle level Middle level It is related Top and
management is middle level management management to all the middle level
concerned with management is related is involved in levels of management
planning the s related with with directing the management are
activities. organizing recruitment, employees. to achieve responsible
the required training and the goal of for controlling
resources. selection organization. the activities.
Top level is
concerned
with
promotion
and
compensation.

Summary

Every type of organization needs to focus on effectiveness of managerial functions. These are
pervasive in nature. Managing all business activities with the help of employees is a decision making
process. The starting point of cycle of management functions is planning and last point is controlling
which is again the basis of next plan of organization. The goal of organization can be achieved
within predefined period with the help of proper applications, reviews and revisions of application
of plans and policies.
Management functions are listed in short as follows:
1. Planning: It is the fundamental function which gives an outline about where to go, how to go
and reduces the risk of uncertain future with the help of forecasting.
2. Organizing: The synchronization and combination of workforce, physical, financial and
information resources are established in the process of organizing.
3. Staffing: It is the process of attracting, recruiting, selecting, placing, appraising, remunerating,
developing and retaining the best workforce.
4. Directing: It refers to a process or technique of instructing, guiding, inspiring, counselling,
overseeing and leading people towards the accomplishment of organizational goals.
5. Coordinating: It is the integration and synchronization of the efforts of group so as to provide
unity of action for organizational goals.

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6. Controlling: It is a process of comparing the actual performance with the predetermined
standard performance. It measures deviation if any, identifies the cause of deviation and sug-
gests corrective measures.
Just to know

"Functions of Managers in a Modern Organization"

Critically asses and evaluate what functions managers perform in a Modem organization
and what skills they require? There are different views on what functions manager should perform
within a modern organization and which skills they require.
There is great competition for job in the modern world as new applicants from all over the
globe can offer new and exciting differences to a business. These individual and unique skills
are those which separate a good manager from the rest. Companies look for a mix of skills and
experience depending on the business itself, including personal qualities, habits and social grace.
These certain skills include personal qualities such as a positive attitude, which can be reflected
into other employees as a manager is usually seen as a role model. As well as they also require
good communication skills not only to talk to an individual but also to listen and become aware
of current issues. 'Active listening helps managers gather relevant information'. However, it must
be taken into account that due to the globalization, individuals come from different cultures and
backgrounds for taking management jobs. This may create problems. Different managers learn
different techniques and work within different conditions across the globe. This may be a problem
as management as a whole may be done differently.

EXERCISE
Q.l) (A) Select the correct option and rewrite the sentence.
1) The functions of management start with ............... function.
a) organising b) planning c) coordinating
2) The functions of management end with ...............
a) directing b) staffing c) controlling
3) ............... sets out standards for controlling.
a) Staffing b) Planning c) Coordinating
4) Organization function is important for execution of the plans which have been prepared by
............... management.
a) top level b) middle level c) lower level
5) ............... is the function which supports to activate the plans with the help of employees.
a) Staffing b) Directing c) Co-ordinating
6) ............... is the function of execution according to the plan and the organizational structure.
a) Controlling b) Directing c) Staffing
7) ______ arranges the work in such a way that minimum conflicts are raised.
a) Co-ordinating b) Organizing c) Controlling

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(B) Match the pairs.
Group 'A' Group 'B'
A) Planning 1) It is the process of instructing, guiding, communicating
and motivating.
B) Organizing 2) It is an integration and synchronization of the efforts
of group.
C) Staffing 3) Deciding in advance what to do, how to do, when to do
and who is to do it.
D) Directing 4) Management is what manager does.
E) Coordinating 5) To focus on the role of manager.
6) Decides the ways and means to achieve what has been
planned.
7) It is the process of comparing the actual performance
with the pre-deterined standard performance.
8) It is a set of principles.
9) It is the process of recruiting, selecting, placing and
remunerating.
10) To manage is to forecast and plan.
(C) Give one Word / Phrase / Term for the following statements.
1) The right person at the job with right pay.
2) A person who shows the correct path as well as guides employees in solving the problems.
3) First function of management.
4) Last function of management.
5) It is an intellectual process of logical thinking and rational decision making.
6) The term that is used to denote the structure.
7) It is the process of attracting, recruiting, selecting, placing, appraising and remunerating the
people.
8) The process that leads the employees towards the accomplishment of organizational goals.
9) It increases the team spirit of work place.
10) It is the process of comparing the actual performance with the predetermined standard
performance.
(D) State whether following statements are true or false.
1) Every function of management is not based on planning.
2) Specialization in activities leads to increase in organizational efficiency.
3) Qualified, efficient and skilled work force is always an asset of the organization.
4) Cooperation is not necessary for smooth flow of organizational activities.
5) Coordination motivates the employees to take initiative while completing their assigned task.
6) Standards are not set for every performance in controlling function.

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(E) Find the odd one.
1) Planning, Organizing, Staffing, Writing.
2) Selecting, Training, Co-ordinating, Placing
(F) Complete the sentences.
1) The tasks of getting the things done by others is known as ............. .
2) The functions of manager start with ............. .
3) The ............. function of management initiates action
4) Recruitments are done under ............. function.
5) ............. is the fundamental function of management.
6) ............. integrates departmental activities for achieving common goal of the organization.
7) ............. is the last function of management.
(G) Select the correct option from the bracket.
1) Planning is a detailed programme of (present/future/past) course of action.
2) Directing is a responsibility of (manager/workers/people) at all levels.
3) Qualified, efficient and skilled workforce is always an (liabilities/assets/expenses) of the
organization.
(H) Answer in one sentence.
1) What is management?
2) What is planning?
3) What is staffing?
4) What is directing?
5) What is controlling?
(I) Correct the underlined word and rewrite the following sentences.
1) Factors of business environmert are always fixed.
2) Staffing is concerned with machines.
3) Directing is a function of comparing the actual performance with the predetermined
performance.
4) Co-ordination helps to maximize the wastage of resources and controls the cost of work.
5) Controlling measures are rigid to some extent.
(J) Arrange in proper order.
1) Controlling, Organizing, Planning. 2. Directing, Co-ordinating, Staffing.
Q.2 Explain the following terms/concept.
1. Management 2. Planning 3. 0rganizing 4. Staffing 5. Directing
Q.3 Study the following case/situation and express your opinion.
1) Mr. Ram, an emergining entrepreneur has designed a structure of his business organization by
taking into consideration the required resources such as land, money, machinery, workforce
etc, for his new business. He appointed Mr.Shyam as a manager. Mr.Ram has assigned the

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 responsibilities such as recruitment, selection, training and development and to determine the
remuneration of the employees' to Mr.Shyam. Mr. Ram has also appointed Mr.Shubham to
supervise the work done by the employees according to the standards given to the employees.
Mr.Shubham has to also suggest the remedies to the employees wherever necessary.
On this context, find out the management functions performed by
i. Mr. Ram ii. Mr.Shyam iii. Mr.Shubham
2) In XYZ Company, Mr. Lele gives instructions to the employees working under him, provide
guidance and motivates them for their best performance. On the other hand Mr.Sayyad takes
effort to harmonize the work done by the employees of different departments while achieving
organizational goal. Mr.Desai is looking after the arrangement of required resources to the
business organization.
Mention the name of employee engaged in following functions:
i. Organization ii. Direction iii. Coordination
Q.4 Distinguish between.
1) Planning and organizing 2. Organizing and staffing 3. Staffing and directing 4. Directing and
controlling 5. Co-ordinating and controlling 6. Planning and Controlling 7. 0rganising and
Directing 8. Organising and Co-ordinating
Q.5 Answer in brief.
1) Explain any five points of importance of planning.
2) Explain any five points of importance of organizing.
3) Describe any five points of importance of staffing.
4) Explain any five points of importance of directing.
5) Describe any five points of importance of coordinating.
Q.6 Justify the following statements.
1) Planning is the first function of management.
2) Controlling is the last function of management.
3) Organizing facilitates administration as well as operation of the organization.
4) Right person at right job with right pay is the basic principle of staffing.
5) Co-ordination between different functions and all levels of management is the essence of
organizational success.
Q.7 Attempt the following.
1) Explain the importance of planning.
2) Describe the importance of organizing.
3) Explain the importance of staffing.
4) Explain the importance of directing.
5) Describe the importance of coordinating.
6) Explain the importance of controlling.

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Q.8 Answer the following.
1) Define the term planning and explain the importance of planning.
2) What is organizing? Explain the importance of organizing.
3) What do you mean by staffing? Describe the importance of staffing.
4) Give the definition of directing and explain the importance of directing.
5) What is coordinating? Describe the importance of coordinating.
6) Define the term controlling and explain the importance of controlling.

Answer Key

A.1 (A) 1) Planning 2) controlling 3) Planning 4) top level 5) Directing

6) Directing 7) Coordination
(B) A-3, B-6, C-9, D-I,E-2
(C) I) Staffing 2) Director 3) Planning 4) Controlling 5) Planning 6) Organization
7) Staffing 8) Directing 9) Co-ordinating 10) Controlling
(D) True - 2, 3, 5 False - 1, 4, 6
(E) 1) Writing 2) Co-ordinating
(F) 1) Management 2) Planning 3) directing 4) staffing 5) Planning 6) o-ordinating
7) contrrolling
(G) 1) future 2) manager 3) asset
(I) 1) changing 2) humans 3) controlling 4) Minimizes 5) flexible
(J) 1) planning, organizing, controlling 2) Staffing, Directing, Co-ordinating

REFERENCES:
1. Management Principles and Practices, N.K.Sharma, MANGAL DEEP PRAKASHANS,
JAIPUR
2. Management, James A. F. Stoner, R.Edward Freeman, Daniel R.Gilbert,JR, PEARSON
3. Principles and Practice of Management, T.N.Chhabra, S.CHAND & COMPANY LTD., NEW
DELHI
4. Principles of Management, R.N. Gupta, S.Chand

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