Ch 1 Nature of Management

1.1Meaning & Importance, Functions1.2 Role of Managers

Definition of Management

“Management is an art of getting things done through and with the people in formally organized groups. It is an
art of creating an environment in which people can perform and individuals and can co-operate towards
attainment of group goals.”

Management is a universal phenomenon for every individual and organization. It is the management that helps
and directs an individual’s efforts towards a specific purpose.

According to F.W. Taylor, “Management is an art of knowing what to do when to do and see that it is done in
the best and cheapest way”.
With proper management, one can attain a set of certain pre-determined goals. Management involves working
with others to achieve organization’s goals by efficiently deploying limited resources in the evolving world.
While goals may vary from one enterprise to another, a strategized plan implemented with proper management is
a necessity. For instance, for one organization, it can be launching a new product through market surveys and for
other it may be ROI increase by reducing cost.

 According to George R. Terry, “Management Is a distinct process consisting of planning, organising, actuating

and controlling; utilising in each both science and art, and followed in order to accomplish pre-determined
objectives.”

 According to Peter Drucker, “Management is a multi-purpose organ that manages business and manages
managers and manages workers and work.”

 According to Harold Koontz, “Management is the art of getting things done through and with people in formally
organised groups.”

 According to Peterson and Plowman, “Management may be defined as the process by means of which the
purpose and objectives of a particular human group are determined, clarified and effectuated.’’

 According to F.W. Taylor, “Art of knowing what you want to do and then seeing that it is done the best and
cheapest way.

 According to Mary Parker Follett, “The art of getting things done through people.”

Creating an internal environment is a crucial part of Management. It is the responsibility of the management team
to create appropriate circumstances that encourage maximum efforts so that peers or subordinates are able to
perform their task efficiently. There is a definite process at various levels of management which includes
ensuring the availability of raw materials, deciding the end-product, determining the wages and payrolls,
evaluating the performances, formulation of rules & regulations, and much more.

Hence, it can be said that good management includes being effective as well as efficient. With effectiveness, we
mean doing the tasks rightly, somewhat like ‘fitting the square pegs in square holes and round pegs in round
holes’. On the other hand, being efficient means doing the task correctly at the minimalist cost with minimum
wastage of resources.
Importance of Management

1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the
resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards
achievement of pre-determined goals. By defining objective of organization clearly there would be no
wastage of time, money and effort. Management converts disorganized resources of men, machines,
money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a
manner that enterprise work towards attainment of goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in industry from out of various uses. It makes use of
experts, professional and these services leads to use of their skills, knowledge, and proper utilization and
avoids wastage. If employees and machines are producing its maximum there is no under employment of
any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning and by using
minimum input & getting maximum output. Management uses physical, human and financial resources in
such a manner which results in best combination. This helps in cost reduction.
4. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To
establish sound organizational structure is one of the objective of management which is in tune with
objective of organization and for fulfillment of this, it establishes effective authority & responsibility
relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors &
who are subordinates. Management fills up various positions with right persons, having right skills,
training and qualification. All jobs should be cleared to everyone.
5. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch
with the changing environment. With the change is external environment, the initial co-ordination of
organization must be changed. So it adapts organization to changing demand of market / changing needs
of societies. It is responsible for growth and survival of organization.
6. Essentials for Prosperity of Society - Efficient management leads to better economical production which
helps in turn to increase the welfare of people. Good management makes a difficult task easier by
avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is
beneficial to business and society will get maximum output at minimum cost by creating employment
opportunities which generate income in hands. Organization comes with new products and researches
beneficial for society.

What are the Functions of Management?

Everything you need to know about the functions of management. Management is the process of getting things
done through others.
This process is identified in a set of functions performed by managers to accomplish the goals. Management in an
organization plays a dominant role to achieve the targeted goals of profit maximization and increased market
share.
The main aim of management is to achieve the organisational goals while using the organisational resources
most effectively.

Management is what management does. It is the art of getting things done through and with people in formally
organized groups. We manage an organisation to achieve certain objectives and goals.
For this purpose, the manager performs some fundamental functions. They are called managerial functions and
basically consist of five elements.
The functions of management are:- 1. Planning 2. Organising 3. Staffing 4. Directing 5. Controlling 6. Co-
Ordination 7. Co-Operation.

7 Functions of Management: Planning, Organising, Staffing, Directing, Controlling, Co-Ordination and

Co-Operation
What are the Functions of Management – As Classified by Henry Fayol, Gulick and Urwiik, R.C. Davis
and Koontz and O’Donnell
Many management experts have discussed the functions of management. But there is no unanimity among them
about the classification of managerial functions. The chief reason for this lack of unanimity is that the different
management experts discussed the management functions by studying different organisations and from different
angles. We give here the classifications given by some of the writers.

Henry Fayol, the father of principles of management, has classified managerial functions as follows:
(a) Planning, including forecasting, (b) Organising, (c) Commanding, (d) Coordinating, and (e) Controlling.
Gulick and Urwiik have classified management functions into seven. They coined the word ‘PODSCORB’ to
describe the functions of management.
Each letter of this word denotes the initial letter of management functions, namely- (a) Planning, (b) Organizing,
(c) Directing, (d) Staffing, (e) Coordinating, (f) Reporting, and (g) Budgeting.

According to R.C. Davis, there are three management functions, viz., (a) planning, (b) motivating, and (c)
controlling, whereas G.R. Terry classified management functions into four, viz., (a) planning, (b) organising, (c)
activating, and (d) controlling.

Koontz and O’Donnell have classified management functions into five. They have stated that “the most useful
method of classifying managerial functions is to group them around the activities of planning, organising,
staffing, directing, and controlling.” Thus, according to them, there are five functions of management.
From the above study, we can state that the functions vary from three to eight and there is unanimity only in
respect of three functions, viz., planning, organising and controlling. The functions of directing which is
concerned with the directing of human behaviour for getting things done has been called by various authors as
commanding, motivating or communicating. Some authors have introduced staffing functions by splitting the
social aspect of organization.

Thus, the functions of management may be classified as:

1. Planning,
2. Organizing,
3. Staffing,
4. Directing, and
5. Controlling.
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Some authors consider “co-ordinating” as a separate function. But as the basic objective of all managerial
functions is to achieve co-ordination in organised human efforts, co-ordination is the essence of management and
it cannot be considered as a separate function.
Koontz and O’ Donnell have stated that, in practice, it is not always possible “to place all managerial activities
neatly into these categories since the functions tend to coalesce.”
According to Professor Haimann, it is helpful to think of these managerial functions as a continuous circular
movement.They flow into each other and at times, it is difficult to know where the one ends and the other begins.
Considering all these views on management functions, it may be said that management involves the
following functions:

Function # 1. Planning:
Planning is concerned with the determination of the objectives to be achieved and the course of action to be
followed to achieve them. Before starting any action, one has to decide how the work will be performed and
where and how it has to be performed. Thus, planning implies decision-making as to what is to be done, how it is
to be done, when it is to be done and by whom it is to done. Planning helps in achieving the objectives efficiently
and effectively. Planning involves selecting of objectives and strategies, policies and programmes and procedures
for achieving them.
Planning function is performed by managers at every level because planning may either be for the entire
enterprise or for any section or department thereof. Planning pervades the entire gamut of managerial activity,
and also it is continuous and never-ending. While the managers at the top level devote more time on planning, the
managers at the lower level follow the policies, programmes and procedures laid down by the top management.
For any business activity, planning is a prerequisite for doing anything and also to ensure the proper utilisation of
the resources of the business concern to achieve the desired goals. Plans can be classified into standing plans and
single-use plans. Standing plans include objectives, policies, procedures, methods and rules and single-use plans
include budgets, programmes, strategies and projects.
Function # 2. Organising:
According to Fayol, “to organise a business is to provide it with everything useful to its functioning — raw
materials, tools, capital and personnel.” Thus, organising involves bringing together the manpower and material
resources for the achievement, of objectives laid down by the enterprise.
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Organising involves the following process:

(a) Determining and defining the activities involved in achieving the objectives laid down by the management;
(b) Grouping the activities in a logical pattern;
(c) Assigning the activities to specific positions and people; and
 (d) Delegating authority to their positions and people so as to enable them to perform the activities assigned to
them.
Organising function helps in increasing the efficiency of the enterprise. Further, by avoiding repetition and
duplication of activities, it reduces the operation cost of the enterprise.
But organising function can be useful to the enterprise only when there are clear and verifiable objectives and
clear understanding of the activities needed to achieve the objectives and clear definition of the authority assigned
to the managers at every level.
Function # 3. Staffing:
Every enterprise is very much concerned with the quality of its people, especially its managers. The staffing
function is concerned with this aspect of management. According to Harold Koontz and Cyril O’ Donell, “the
managerial function of staffing involves manning the organisational structure through proper and effective
selection, appraisal and development of personnel to fill the roles designed into the structure.”
Thus, the staffing functions involve:
(a) Proper selection of candidates for positions;
(b) Proper remuneration;
(c) Proper training and development so as to enable them to discharge their organisational functions effectively;
and
(d) Proper evaluation of personnel.
Staffing function is performed by every manager of the enterprise as he is actively associated with the
recruitment, selection, training and appraisal of his subordinates. For example, the Board of Directors of the
enterprise undertakes the staffing function by selecting and appraising the Chief Executive who, in turn, performs
these functions in relation to his subordinates like divisional heads or departmental heads of the enterprise.
Similarly, departmental heads or their subordinates also perform the staffing function.
Staffing function is a difficult managerial function because it is concerned with the selection of persons who are
properly qualified and mentally well-adjusted to the situations.
Directing is one of the important functions of management and is the art and process of getting things done.
While other functions like planning, organising and staffing are merely preparations for doing the work, the
directing function actually starts the work.
Directing is concerned with actuating the members of the organisation to work efficiently and effectively for the
attainment of organisation goals. Directing involves the manager telling the subordinates how they have to
perform jobs assigned to them. It is concerned with guiding, supervising and motivating the subordinates for
achieving the enterprise objectives. According to Joseph Massie, “Directing concerns the total manner in which a
manager influences the action of his subordinates. It is the final action of a manager in getting others to act after
all preparations have been completed.”
Directing consists of the following four sub-functions:
a. Communication or issuing of orders and instructions to subordinates. A manager has to instruct the
subordinates what to do, how to do it and when to do it.
b. Guiding, energising and leading the subordinates to perform the work systematically and also building up
among workers confidence and zeal in the work to be performed.
c. Inspiring the subordinates to do work with interest and enthusiasm for the accomplishment of the enterprise’s
objectives.
d. Exercising supervision over the subordinates to ensure that the work done by them is in conformity with the
objectives that are determined.
Function # 4. Controlling:
Controlling is related to all other management functions. It is concerned with seeing whether the activities have
been or being performed in conformity with the plans. According to Haimann, “Control is the process of
checking to determine whether or not, proper progress is being made towards the objectives and goals and acting
if necessary to correct any deviation.” Koontz and O’Donnell have defined controlling “as the measurement and
correction of the performance of activities of subordinates in order to make sure that enterprise’s objectives and
the plans devised to attain them are being accomplished.”
Thus, controlling involves the following sub-functions:
(a) Determination of standards for measuring work performance.
(b) Measurement of actual performance.
(c) Comparing actual performance with the standards.
(d) Finding variances between the two and reasons for variances.
(e) Taking corrective actions to ensure attainment of objectives.
For control to be effective and fruitful, it must be based on a plan; there must be measurement of actual
performance to ascertain deviations and to take action to remedy the deviations.

What are the Functions of Management – Functions Performed by all the Managers
Management is the process of getting things done through others. This process is identified in a set of functions
performed by managers to accomplish the goals.
Though different authors have different views on functions of management, following functions are
generally performed by all the managers:
1. Planning:
According to Terry and Franklin, “Planning is selecting information and making assumptions regarding the future
to formulate the activities necessary to achieve organizational objectives.”
“Planning involves selecting missions and objectives and the actions to achieve them; it requires decision-making
that is, choosing from among alternative future courses of action.” Planning is done at all levels of management.
At higher levels, plans are long-term in nature and at lower levels they are short-term in nature. Planning, in
simple terms, is setting targets and objectives to be achieved, devising ways to achieve them and selecting the
best action to achieve the goals.
2. Organizing:
Organizing is:
(a) Identification and classification of objectives,
(b) Grouping of activities necessary to attain objectives,
(c) Assignment of each grouping to a manager with the authority (delegation) necessary to supervise it, and
(d) Co-ordinating the activities horizontally (at the same or similar organizational level) and vertically (for
example, corporate headquarter, division and department) in the organization structure. “Organization is the
structure and process by which a cooperative group of human beings allocates its tasks among its members,
identifies relationships, and integrates its activities towards common objectives.”
3. Directing:
“Directing is telling people what to do and seeing that they do it to the best of their ability. It includes making
assignments, corresponding procedures, seeing that mistakes are corrected; providing on-the-job instructions and,
of course, issuing orders.”
According to Unvick and Brech “directing is the guidance, the inspiration, the leadership of those men and
women that constitutes the real core of responsibility of management.”
Directing is, thus, activating. It is bringing plans into action by motivation, communication, leadership,
supervision and team building of the organizational members.
4. Staffing:
Staffing means identifying human resource needs, filling the organizational structure and keeping it filled with
competent people. According to Massie, “The staffing function includes the process by which the right person is
placed in the right organizational position.”
5. Controlling:
“Control is the process that measures current performance and guides it towards some pre-determined goal. The
essence of control lies in checking existing actions against some desired results determined in the planning
process.”
“Controlling is determining what is being accomplished, that is, evaluating the performance and, if necessary
applying corrective measures so that the performance takes place according to plans”.

What are the Functions of Management – 5 Important Functions: Planning, Organizing, Staffing, Leading
and Controlling
Management in an organization plays a dominant role to achieve the targeted goals of profit maximization and
increased market share.

In this process, it needs to carry out some important functions which have been briefly explained below:
1. Planning:
Planning function of management takes into account defining goals, establishing strategies and developing plans
to coordinate activities of a business unit. The function incorporates decision making to define goals for future
organizational performance and drafting plans of action to attain them.

It primarily involves analysis of current situation, anticipating the future, setting objectives and deciding the
activities in which company will engage itself, selecting business strategies and deciding about the resource
requirement for achievement of organizational goals. Hence, planning function of management works to establish
next milestone for action orientation.

2. Organizing:
Post planning, each manager then engages himself in assigning tasks, grouping these tasks into departments and
allotting resources to departments. These functions are grouped as organizing. He primarily puts together human,
financial, physical, information and other resources needed to achieve pre-specified, well-defined objectives.

Organizing function includes important activities like attracting the right or competent people to the organization,
specifying job roles and responsibilities, grouping jobs into departments/divisions, allocation of resources and
creating conducive conditions so that human and all other resources are put together to maximize success.

3. Staffing:
After the organization’s structural design is in place, it needs people with right skills, knowledge, and abilities to
fill in that structure. People are an organization’s most important resource, because people either create or
undermine an organization’s reputation for quality in both products and services.

4. Leading:
This management function involves the use of influence to motivate employees to achieve organizational goals.

5. Controlling:
This function is primarily directed towards monitoring of employees’ activities, ensuring the correct working of
the organization and implementing corrective measures as and when needed.

The managers in an organization effectively manage situations without losing a track of overall framework of the
organizational objectives and goals. A manager has to manage resources of the organization by allotting them in
an optimum way in the best interest of the organization and welfare of employees through providing enlightened
and inspiring leadership.

Managers have distinctive abilities to churn out extraordinary results from ordinary people. The logical aim
before any manager is to generate surplus. The manager must establish and create an environment in which
people can accomplish group goals with least amount of time, money, material and personal dissatisfaction.

They may take decisions; allocate resources and direct activities of others to achieve specific predetermined
objectives and goals. An organization is composed of two or more people that function on a relatively continuous
basis to achieve a common goal or set of goals.

What are the Functions of Management – Planning, Organizing, Staffing, Directing, Controlling and Co-
Ordination
The functions of management include the following:
1. Planning:
Planning is the first and foremost function of the management. All other .functions are based on planning
function. Manager has to determine in advance what it is to be done, when it is to be done, and how it is to be
done. Optimum utilization of resources is out of question without planning.
Planning eliminates the tendency to work in a haphazard fashion. It sets the direction for the entire organization
to proceed towards the goals. Planning may be regarded as the process of determining objectives, discovering
alternative courses of action and selecting an appropriate course of action for accomplishing goals. In the absence
of planning, no other managerial function can be performed.
Plans are not rigid and they are supposed to be flexible in response to changes in external environment.
The entire planning function revolves round the following:
i. Determination of objectives for the organization.
ii. Formulation of policies, budgets, programmes and schedules.
iii. Formulation of plans of action both strategic and operational.
iv. Forecasting.
v. Decision making.
Planning is an ongoing process, a persuasive function and done across the levels of management.
2. Organizing:
The term ‘organizing’ generally connotes assembling men, money, material and technology together. But in
organizational context, organizing is the process of establishing harmonious relationship among the members of
an organization and the creation of network of relationship among them. Under organizing function, work is
assigned to employees, who are given authority to carry out the work assigned and made accountable for it.
Organizing involves the following activities:
i. Determining the total activities of business essential to accomplish organizational objectives.
ii. Dividing and sub dividing the total activities into identifiable groups.
iii. Grouping the activities of similar nature in terms of departments/sections/ units.
iv. Delegation of authority to respective departments.
v. Coordinating the functions of different departments for accomplishing the overall goals of an organization.
3. Staffing:
Once plans are put in place, and the structure of the organization has been designed, managers seek to fill up the
organizational slots with suitable manpower.
This requires the following functions to be performed:
i. Determination of manpower requirements for the whole organization.
ii. Arranging to identify eligible candidates and persuading them to apply for the vacancies.
iii. Selecting suitable candidates.
iv. Formulating HR policies for governing manpower of the organization.
v. Periodical training of manpower and their development.
vi. Compensating the manpower and incentivising decisions.
vii. Installing grievance redressal mechanism.
viii. Periodical evaluation of human resources and promotion decision.
ix. Transfer, promotion, disciplinary actions and termination.
x. Motivation of employees.
xi. Putting in place employee well-being measures and career development opportunities.
All the aforesaid areas fall within the ambit of staffing domain.
4. Directing:
Directing denotes motivating, leading, guiding and communicating with subordinates on an ongoing basis in
order to accomplish pre-set goals. Employees are kept informed of all necessary matters by circulars, instructions,
manuals, newsletters, notice-boards, meetings, participative mechanisms, etc., in order to enable the employees to
accomplish the organizational goals.
The process of directing involves the following:
i. Issuing orders and instructions regarding the work to be performed.
ii. Guiding, counseling, mentoring and educating the employees.
iii. Supervising the work of employees on a regular basis.
iv. Maintaining discipline among employees and rewarding those who perform their jobs efficiently.
v. Motivating the employees and inspiring subordinates to follow the orders and instructions.
vi. Providing effective leadership to employees.
5. Controlling:
The process of controlling is the final function carried out in terms of planning. This function is performed to
evaluate the performance of employees and deciding increments and promotion decisions. The control function
helps in identifying under-performers and arranging remedial training for them. It is the control function which
facilitates synchronisation of actual performance with predetermined standards.
The following activities are performed under control function:
i. Fixing performance standards for subordinates.
ii. Measuring the actual performance in the light of standards.
iii. Comparing the actual performance with standards.
iv. Finding out the causes for deviation and analyzing them.
v. Undertaking corrective measures in order to bring actual performance to the standards set.
vi. Besides various control devices like accounting, auditing, management information system, network analysis
and cost control, financial tools are also used in organizations for control purpose.
6. Co-Ordination:
Coordination is the process of synchronising the diverse functions of domains and securing unity of action. It is
compared to chariot driven by multiple horses. The charioteer has to drive all die horses in one direction. Similar
is the case of an organization.
The CEO is charioteer like Lord Krishna in Mahabharat. It is a conscious and rational process of pulling together
various department of an organization and unifying them into a team to accomplish goals in an effective manner.

What are the Functions of Management – 5 Most Important Functions: Planning, Organising, Staffing,
Directing/Leading and Controlling
Function # 1. Planning:
We can define planning as a process of creating a comprehensible and transmittable schema (mental form) for
attaining organisational goals/ objectives using given or optimal resources, whichever is less. It is pertinent to
note that planning involves working within the available resources or using only the optimum resource.
Plans are mental pictures and the frontal lobe of the brain is connected with it. However, unless these mental
schemas are converted into a comprehensible and transmittable form, we cannot process the plans. If you say that
you have a plan, you are likely to be told to put it on paper and submit it, because plans have to be vetted and
evaluated by the senior management, the funding agencies, and executed by officials. Hence, mental models are
insufficient.
Though several authors include setting goals/objectives as part of planning because of their close association, it is
preferable to perceive it as a pre-planning exercise. We should accept the idea that goals/objectives of a plan are
often modified during planning because they may prove to be unviable with the given resources. Plans should
normally end in decisions to execute the plan.
Function # 2. Organising:
Organising can be defined as the process of defining and grouping the activities of the enterprise and establishing
the power-relationships among them with the purpose of achieving division of labour, coordination, and
cooperation for accomplishing goals/objectives optimally. Optimisation through specialisation and division of
labour is the point that one should note in this definition.
Organising and OB:
Organising creates the authority-power framework in an organisation. Behaviour related to power, influence,
conflicts, and negotiations in an organisation would be influenced by it. If the design of the structure is efficient,
you can expect a conflict-free environment. If not, the organisation would be susceptible to conflict and this
would affect people’s behaviour. Therefore, knowledge of organising is of great importance for a student of OB.
Function # 3. Staffing:
Organising creates a structure into which each job with responsibilities, authority, and power fit. However, it is
still a skeleton without life. Structure is inanimate and staffing makes it animate. Staffing can be defined as the
process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality, to create a positive
impact on the organisation’s effectiveness.
For example, you can state that Precision Connectors should have an insulation section with a head and that s/he
should have well-defined roles and responsibilities, but that happens only when a person actually occupies that
post. Authority is inherent in organising, but it is exercised only when a person actually takes up a job.
Staffing comprises acquisition (recruitment and selection), deployment (processes leading to the employment of
people), and retention (preventing the unwanted outflow of employees from an organisation).
Function # 4. Directing/Leading:
The leading process vis-a-vis directing process and highlight the importance of leading in the contemporary
business context.
Directing can be defined as the process by which managers instruct, guide, and oversee the performance of
workers to achieve predetermined goals. Mere planning, organising, and staffing do not lead to achieving goals.
Work starts when a person is told, or directed to do it. Today, the term ‘directing’ is being fast replaced by the
term ‘leading’. Another way to look at it is that given the vision and goals, people can direct themselves.
There are various methods of directing:
a. First, it can be done by coercion. Here, the manager gives the direction/ order, and the subordinate is
submissive and obeys.
b. Second, it can be done by providing guidance. In this method, the manager gives guidance, intended to
encourage people to work efficiently and effectively. This makes directing ‘supportive’ in nature.
c. Third, managers can go beyond providing guidance and encourage, instruct, and inspire people to accomplish,
which becomes even more supporting.
d. Finally, managers may accept that all employees are stakeholders and decide to adopt a leadership approach to
directing. Leading can be defined as the process of setting direction, creating alignment, and creating engagement
to deliver high productivity and to facilitate change. In this sense, directing is only a part of leading.
Types or Styles of Directing/Leading:
Leading can be divided into two basic types—directing type and supporting type. They can, and do coexist.
Based on this classification, we can identify four types of leading.
Such as:
a. Directing Type- It is a high directing and low supportive type of style and gives specific direction much like a
foreman does. It is well suited for a highly committed beginner, with low competencies.
b. Coaching Type- It is high directing, high supportive, and there is dialogue and listening to the ideas. But the
decision is still with the leader. This style suits well when dealing with a disillusioned employee/subordinate with
low commitment, but some competencies. A typical supervisor follows this style.
c. Supporting Type- It is low directing, high supporting mode, and encourages dialogue and decision-making by
the employee/subordinate. It is very suitable for an emerging contributor, with moderate commitment and high
competencies. This style of directing is often referred to as ‘facilitating type’.
d. Delegating Type- It is low directing, low supporting where the leader accepts the decisions made by the
employee/subordinate. Delegation is a suitable approach for a peak performer with high commitment and compe-
tencies. Here, leading is more of coordinating than direction giving.
Steps in Directing/Leading:
The important steps in leading are as follows:
Step 1- Direction Setting and Defining Values:
In this step, the organisational direction and the core values are discussed and frozen. This becomes the beacon
for all further actions.
Step 2- Participatory Stretch Goal Setting with Outputs and Outcomes:
In the second step, stretch goals are defined. A stretch goal is basically a challenging goal, but not an impossible
goal. It demands extra effort to achieve these goals; but the subordinate is capable of making that effort.
Step 3- Joint Resource Planning and Acceptance of Deliverables:
This step sets the stage for the followers to take off on delivering the goals or commence execution.
Step 4- Participatory Definition of Performance Indicators:
This brings clarity to goals and avoids perceived differences which can lead to deviation from the goals. It also
obviates future conflicts.
Step 5- Feedback and Feed Forward:
This is done for course correction or reconfirmation of the effectiveness of leading, learning lessons, and for
iterating the process for continuous improvement. Feedback/feed forward is a two way process. A leader may
give feed-back to a subordinate, and the subordinate, may in turn give feed forward to the leader. The process can
be vice versa be also.
Directing/Leading and Organisational Behaviour:
Leading creates the organisational environment for high productivity and performance through various actions
such as direction setting, involving people, inspiring through joint creation of stretch goals, and working with
self-motivation. It drives the ecosystem within which the staff gets into execution mode and so, influences both
individual and group behaviour.
Function # 5. Controlling:
When you undertake activities to fulfil a goal as per a plan, it is quite natural that small and large deviations take
place. If these are not corrected in time, their cumulative effect could result in failure to achieve goals.
Controlling can be defined as monitoring and evaluating activities, and providing corrective mechanisms.
Often, it is considered a part of planning because, by controlling, we ensure that a plan progresses as per the
original schema. However, we can differentiate them because planning precedes controlling. Planning defines the
standards to be achieved, whereas controlling defines how to measure them, find out the variance or gap, and
rectify them. Controlling comes into play during execution as a way to regulate execution, whereas planning
paves the way for execution.

What are the Functions of Management – Planning, Organizing, Directing and Controlling
Managing requires that a good proportion of your time is spent on carrying out the following functions:
1. Planning—defining goals, forecasting and working out schedules so that the right things are done in the right
order.
2. Organizing—deciding what is required and who should do what.
3. Directing—instructing, coordinating, motivating and leading.
4. Controlling— keeping an eye on things to check that everything is going according to plan.
1. Planning:
In order to manage well, you need to plan. In order to plan, you have to know your ultimate aim (goal).
You, therefore, need to know:
i. Where you are now
ii. Where you want to be
iii. How you will get there.
To plan effectively, you should be able to analyse the current situation, forecast what has to be achieved,
calculate and decide how this will be done, and evaluate progress and make necessary adjustments along the way.
2. Organizing:
Organizing means dividing up the work and identifying resources, both material and human. You have to
determine what tasks need to be carried out, what materials should be used for the purpose and who will carry out
the task. To be a good organizer, you should have the skills of thinking logically, using your resources
judiciously and making decisions.
3. Directing:
In order to direct people, you have to guide them by instruction. People generally need direction if their actions
are to be effective. It is important to ensure that everyone involved knows what the overall objectives are, what,
they are supposed to do, and what standards have to be maintained.
Knowing the reasons for doing something enables people to work more efficiently and as per prescribed
standards. They can understand the purpose of their actions and the feeling of involvement encourages them to
use their initiative. Just ordering people to do something does not get the required results.
You should be able to lead people in the right way and in the right direction, communicate effectively, and above
all, motivate them to perform well.
4. Controlling:
In order to control business operations, you should be good at keeping an eye on everything—where everything
is, what is going on, and how people are performing. Controlling is the function by which you regulate the plan.
This means taking the right steps and taking corrective action when something goes wrong.
You should be skilled at observing action, measuring performance against standards, and deciding on and
implementing necessary action.
In conclusion, it can be said that the basic functions of managing are:
i. Planning what you want to do
ii. Organizing who should do what and how
iii. Directing the action, and
iv. Controlling the outcome.

What are the Functions of Management – Planning, Organising, Staffing, Directing, Co-Ordination, Co-
Ordination, Co-Operation and Controlling (With Inter-Relationship)
Different authors have given different managerial functions. Henry Fayol was the first to define specific functions
of management. In his words, “To manage is to forecast and plan, to organise, to command, to co-ordinate and to
control.”
He has given the following functions:
(i) Forecasting and planning,
(ii) Organising,
(iii) Commanding,
(iv) Coordination, and
(v) Control.
Luther Gulick used the word POSDCORB to describe various functions.
This initial describes the following functions:
i. Planning (P),
ii. Organising (O),
iii. Staffing (S),
iv. Directing (D),
v. Controlling (CO),
vi. Reporting (R), and
vii. Budgeting (B).
Ralph Davis gave three functions of management – Planning, Organising and Control. He was of the view that
command and co-ordination facilitate control so these should be part of it.
Koontz and O’ Donnell have adopted the following functions:
(a) Planning,
(b) Organising,
(c) Staffing,
(d) Directing, and
(e) Controlling.
Earnest Dale has included innovation and representation to the earlier mentioned functions. G.R. Terry classified
managerial functions under four heads – Planning, Organising, Actuating and Controlling. It can be seen that
there is no agreement about specific functions to be performed by the management.
However, the following comprehensive classification can be given of various managerial functions:
1. Planning,
2. Organising,
3. Staffing,
4. Directing –
(a) Leadership,
(b) Communication,
(c) Motivation, and
(d) Supervision.
5. Coordinating, and
6. Controlling.
Brief outlines of these functions are given below:
Function # 1. Planning:
Planning is a basic managerial function. Planning helps in determining the course of action to be followed for
achieving various organisational objectives. It is a decision in advance, what to do, when to do, how to do and
who will do a particular task. Planning is a process which involves ‘thinking before doing’. Planning is concerned
with the mental state of a manager. He thinks before undertaking a work. Other functions of management such
as- organising, staffing, directing, coordinating and controlling are also undertaken after planning.
Hart defines planning as – “the determination in advance of a line of action by which certain results are to be
achieved.” According to Terry, “Planning is the selecting and relating of facts and the making and using of
assumptions regarding the future in the visualisation and formulations of proposed activities believed necessary
to achieve desired results.”
Planning is a process of looking ahead. The primary object of planning is to achieve better results. It involves the
selection of organisational objectives and developing policies, procedure, programmes, budgets and strategies.
Planning is a continuous process that takes place at all levels of management.
A detailed planning is done in the beginning but the actual performance is reviewed and suitable changes are
made in plans when actual execution is done. Plans may be of many kinds, such as- short range plans, medium
range plans, long range plans, standing plans, single use plans, strategic plans, administrative plans and
operational plans.
The process of Planning involves a number of steps:
(i) Gathering information,
(ii) Laying down objectives,
(iii) Developing planning premises,
(iv) Examining alternative courses of action,
(v) Evaluation of action patterns,
(vi) Reviewing limitations, and
(vii) Implementation of plans.
Function # 2. Organising:
Every business enterprise needs the services of a number of persons to look after its different aspects. The
management sets up the objectives or goals to be achieved by its personnel. The energy of every individual is
channelised to achieve the enterprise objectives. The function of organising is to arrange, guide, co-ordinate,
direct and control the activities of other factors of production, viz., men, material, money and machines so as to
accomplish the objectives of the enterprise.
In the words of Koontz and O’Donnel, “Organising is that part of managing that involves establishing and
intentional structure of roles for people in an enterprise to fill.” Organisation provides the necessary framework
within which people associate for the attainment of business objectives.
Louis A. Allen describes organisation as – “the process of identifying and grouping work to be performed,
defining and delegating responsibility and authority and establishing relationships for the purpose of enabling
people to work most effectively together in accomplishing objectives.”
The process of organisation involves the following steps:
(i) To identifying the work to be performed;
(ii) To classify or group the work;
(iii) To assign these groups of activities or work to individuals;
(iv) To delegate authority and fix responsibility; and
(v) To co-ordinate these authority-responsibility relationships of various activities.
The character and type of organisation depends upon the size and nature of the enterprise.
Though there are many types of organisations but generally three types of organisations are in vogue:
(i) Line organisation;
(ii) Functional organisation; and
(iii) Line and staff organisation.
In line organisation authority flows vertically from the top of the hierarchy to the bottom. Under functional
organisation, the work is divided into different departments. Each department deals in one type of work and it
specialises in one work only. A workman has to work under many superiors who specialise in different functions.
Line and staff organisation provides for specialists with line executives. It is a combination of line and functional
form of organisation.
A sound organisation contributes greatly to the continuity and success of the enterprise. However, an organisation
is not an end in itself. The organisation structure should be flexible.
Function # 3. Staffing:
The function involves manning the positions created by organisation process. It is concerned with human
resources of an organisation. In the words of Koontz and O’Donnel, “staffing is filling, and keeping filled,
positions in the organisation structure through defining work-force requirements/appraising, selecting,
compensating and training.”
Thus, staffing consists of the following:
(i) Manpower planning, i.e., assessing manpower requirements in terms of quantity and quality;
(ii) Recruitment, selection and training;
(iii) Placement of man power;
(iv) Development, promotion, transfer and appraisal; and
(v) Determination of employee remuneration.
Every manager in an organisation has to perform the staffing function in one form or the other, in order to get
things done through others. But, it is decidedly a difficult managerial function as it concerns human beings whose
behaviour and actions cannot be predicted, and that is why it has become a distinct and specialised branch of
management.
Function # 4. Directing:
Directing is concerned with carrying out the desired plans. It initiates organised and planned action and ensures
effective performance by subordinates towards the accomplishment of group activities. Direction is called
management in action. In the words of George R. Terry, “Direction is moving to action and supplying stimulative
power to the group.” After planning, organising and staffing, the manager has to guide and supervise his
subordinates.
According to Massie, “Directing concerns the total manner in which a manager influences the actions of
subordinates. It is the final action of a manager in getting others to act after all preparations have been
completed.”
Directing is a continuous function and is performed at all levels of management.
The main activities involved in direction are as follows:
(a) Leadership,
(b) Communication,
(c) Motivation, and
(d) Supervision.
(a) Leadership:
A manager has to issue orders and instructions and guide and counsel his subordinates in their work with a view
to improve their performance and achieve enterprise objectives. Leadership is ‘the process by which an executive
or manager imaginatively directs/guides and influences the work of others in choosing and attaining specified
goals by mediating between the individual and organisation in such a manner that both will get maximum
satisfaction’.
Leadership is the ability to build up confidence and zeal among people and to create an urge in them, to be led.
To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and
personal integrity. Different situations may demand different types of leadership, viz., autocratic leadership,
democratic leadership and free rein leadership.
(b) Communication:
Communication constitutes a very important function of management. It is said to be the number one problem of
management, today. It is an established fact that managers spend 75 to 90 per cent of their working time in
communicating with others. Communication is the means by which the behaviour of the subordinate is modified
and change is effected in their actions.
The word ‘communication’ has been derived from the Latin word ‘communis’ which means ‘common’. Thus,
communication means sharing of ideas in common. The essence of communication is getting the receiver and the
sender tuned together for a particular message. It refers to the exchange of ideas, feelings, emotions and
knowledge and informations between two or more persons. Nothing happens in management till communication
takes place.
Communication is a two-way process as it involves both information and understanding. It may be written, oral,
and gestural. Communication is said to be formal when it follows the formal channels provided in the
organisation structure. It is informal communication, when it does not follow the formal channels.
Communication flows downward from a superior to subordinates and upward from subordinates to a superior. It
also flows between two or more persons operating at the same level of authority.
Communication is essential at all levels of management for decision- making and planning. It increases
managerial capacity and facilitates control. It has been rightly said that good managers are good communicators
and poor managers are poor communicators.
(c) Motivation:
The term motivation is derived from the word ‘motive’ which means a need, or an emotion that prompts an
individual into action. Motivation is the psychological process of creating urge among the subordinates to do
certain things or behave in the desired manner. It is a very important function of management. The importance of
motivation can be realised from the fact that performance of a worker depends upon his ability and the
motivation.
There are many strategies adopted by managers for increasing the motivation of subordinates. According to
Michel Jucius, “Motivation means the act of stimulating someone or oneself to get a desired course of action to
push the right button to get a desired reaction, a compliment, dollar raise, and a smile, a promise of a rise, a new
typewriter, a preferred location or a new desk.”
Thus, a manager has to provide some personal incentive to the subordinates to motivate, persuade and inspire
them for contributing their best towards the achievement of enterprise objectives. The incentives to be proved
may be financial, such as increase in wages, or non-financial, like better working conditions, job security,
recognition, etc. A sound motivational system must be productive, competitive, comprehensive and flexible, and
it must consider the psychological, social, safety, ego and economic needs of the workers.
(d) Supervision:
Supervision is another important element of directing function of management. After issuing instructions, the
manager or the supervisor has to see that the given instructions are carried out. This is the aim of supervision.
Supervision refers to the job of overseeing subordinates at work to ensure maximum utilisation of resources, to
get the required and directed work done and to correct the subordinates whenever they go wrong.
Though supervision is performed at all levels of management, the major responsibility for supervision lies with
the first line of management. Sound organisational set up, effective delegation, human approach, effective
communication and management by exception make supervision effective.
Function # 5. Co-Ordination:
Co-ordination is one of the most important functions of management. It is essential to channelise the activities of
various individuals in the organisation for the achievement of common goals. Every department or section is
given a target to be achieved and they should concentrate only on their work and should not bother about the
work of other organs.
It is left to the management to see that the work of different segments is going according to pre-determined
targets and corrective measures have to be taken if there is any deviation. Co-ordination creates a team spirit and
helps in achieving goals through collective efforts. It is the orderly arrangement of group effort to provide unity
of action in the pursuit of common objectives.
Dalton McFarland defines co-ordination as the, “process whereby an executive develops an orderly pattern of
group effort among his subordinates and secures unity of action in the pursuit of common purposes.”
Co-ordination can be classified under two categories – (i) vertical and horizontal co-ordination, and (ii) internal
and external co-ordination. Whereas vertical co-ordination is the co-ordination between different levels of
management, the term horizontal co-ordination is used when co-ordination has to be achieved between
departments of the same level of authority. Co-ordination is internal when it is between different sections of the
same concern and external when it is required with persons outside the organisation.
Co-ordination is regarded as the very essence of management as in order to co-ordinate the activities of his
subordinates, a manager has to perform all the other functions of management, viz., planning, organising,
staffing, directing and controlling. It must also be noted by the readers that co-ordination and co-operation do not
mean the same thing.
Function # 6. Co-Ordination and Co-Operation:
Co-ordination is much wider term than co-operation. Co-operation indicates the willingness of individuals to help
each other. It is an attitude of a group of people and is largely the result of voluntary action. Co-ordination, on the
other hand, is a conscious managerial effort which is the result of a deliberate action.
Co-operation is essential for the achievement of co-ordination but it is not a substitute for co-ordination.
However, both co-operation and co-ordination are essential in management.
Function # 7. Controlling:
Controlling can be defined as – “determining what is being accomplished, that is evaluating the performance, if
necessary, applying corrective measures so that the performance takes place according to plans.”
Control is essential for achieving objectives of an enterprise. The planning of various activities does not ensure
automatic implementation of policies. Control is the process which enables management to get its policies
implemented and take corrective actions if performance is not according to the pre-determined standards. If
planning is the beginning of the management process, controlling may be said to be the final stage. If planning is
looking ahead, controlling is looking back. Control is not possible without planning and planning is meaningless
without control.
Control is a line function and executives at various levels of management continuously assess the performance of
their subordinates. The main purpose of control is to see that the activity is achieving the desired results. A
control system, to be effective, must conform to the nature of activity, report deviations promptly, reflect
organisation structure, assure corrective action and be economical.
The process of controlling involves the following steps:
(i) Establishing standards of performance;
(ii) Measuring actual performance;
(iii) Comparing the actual performance with the standard;
(iv) Finding variances or deviations, if any; and
(v) Taking corrective action or measures.
Inter-Relationship between Management Functions:
Management is an integrated process consisting of a number of functions such as planning, organising, staffing,
directing, coordinating and controlling. Every management has to perform these functions at one time or the other
or at the same time. Though the functions have theoretically been independent from each other but practically
they are overlapping and cannot be separated. Each function is blended into the others and each affects the
performance of other functions.
There is no rigid sequence of performing these functions. It is not necessary that organising will be performed
only after the planning function. No hard and fast sequence is followed for performing the functions. It may be
possible that some or all functions are performed at the same time. So various functions are inter-related and are
dependent upon one another for improving their performance.

What are the Functions of Management – 5 Main Functions: Planning, Organising, Staffing, Directing and
Controlling (With Examples)
The main aim of management is to achieve the organisational goals while using the organisational resources most
effectively.
In order to get things done as desired, the management performs functions like:
1. Planning,
2. Organising,
3. Staffing,
4. Directing and
5. Controlling.
1. Planning:
Planning as a management function involves establishing organisational goals, setting business targets and
planning the process to achieve the same most effectively and efficiently. In a way, planning as a function of
management determines what can be done, when it can be done, how it can be done and who can do.
Planning predicts problems a business might come across and formulates strategic plans to deal with them as and
when they occur.
Example – Every business has to decide about the product(s) it would deal in, the markets it would focus,
whether it would produce or trade etc. all these decisions are part of PLANNING.
2. Organising:
Organising as a management function organises human and physical resources to implement decisions taken at
planning stage. It involves dividing the tasks, assigning duties, establishing authorities and responsibilities and
arranging resources. In a way, organising as a function of management determines which activity will be done,
who will do, how it will be done and where it will be done.
To achieve efficiency of operations and effectiveness of results, organising divides the entire business into
manageable departments or work units. The departments work under organisational hierarchy, with established
authority, responsibility and reporting relationships.
Example – Each business organisation has departments like production, sales, finance, human resource etc. Each
department has specific responsibilities, for example, production department is responsible to not only produce
required volume of goods but also maintain quality. A production manager heads the production department. He
organises resources, assigns responsibilities and delegates authority to all the people working in the department to
achieve the set targets.
3. Staffing:
Staffing as a function of management involves recruiting people with right qualification and experience for the
right job at the right time. It involves selecting people and providing training if required so that they are capable
enough to achieve organisational goals effectively and efficiently.
Example – A school appoints those individuals as teachers who have adequate qualification and experience to
teach the specific subject to specific age-group. A computer teacher may have knowledge of computers but may
not be able to work as analyst or programmer as it may require different qualifications and experience.
4. Directing:
Directing as a function of management involves managers to use their leadership qualities to lead, influence and
motivate their subordinates to perform the tasks assigned to them most efficiently. In a way, it involves directing
individuals what to do, how to do and ensure that it is done the way as planned. Praise, positive criticism and
timely guidance helps employees to achieve their best.
Example – A sales manager assigns responsibilities and sets targets for each sales executive. He reviews the
performance of each sales executive from time to time and gives them instant feedback so that targets are
achieved.
5. Controlling:
Controlling as a function of management monitors the performance of employees’ at all critical levels. It involves
comparing the current performance with established standards of performance so that the corrective actions are
taken and organisational goals are achieved as desired.
Example – The Production Head lays down the production plan, the quantity of raw material to be used and the
standard time to be taken for production. Once the production process starts he constantly monitors the floor
performance of workers and keep giving them on the job instructions to achieve the desired targets.
I am sure by now you all must have realized that though the management has various functions to perform but no
function can be performed in isolation. Every activity of a manager requires all the functions of management to
be performed simultaneously of course the degree of importance for a function and time spent may be different
for different activities.

What are the Functions of Management – Planning, Organising, Staffing, Directing and Controlling
We manage an organisation to achieve certain objectives and goals. For this purpose, the manager performs some
fundamental functions. They are called managerial functions and basically consist of five elements.
Let us study these elements of management under five basic heads:
1. Planning – It is a blueprint to achieve the desired results.
2. Organising – It provides a mechanism through which the plan can be put into effect.
3. Staffing – It means selecting the right persons for the right jobs and then developing them.
4. Directing – He aims at inspiring and inducing individuals in an organisation towards the desired goal.
5. Controlling – It means comparing performance against the targets set in the plan.
Essentially, management process is a mental process. All the above five elements of the management process are
dealt with briefly here to provide a foundation for further study.
1. Planning:
Planning follows the dictum “think before you act”. It means thinking in advance. Think today what you want to
do tomorrow. In day-to-day conduct of any business, a businessman encounters many problems. All the facts
relevant to a particular problem are collected and processed.
These processed data give us a series of alternative courses of action to solve the problem. The solution of the
problem involves choosing an alternative that best suits the firm. The choice, therefore, is for an alternative that
optimises the gains of the business. Planning, in this sense, amounts to decision making.
Planning foresees the future and focuses attention on choosing a course of action to meet unforeseen and foreseen
events or problems.
Planning follows a typical 4-W and 1-H formula:
(a) What ought to be done?
(b) Who shall do it?
(c) Where, action is necessary?
(d) Why should we do it?
(e) How should we do it?
The basic philosophy of planning is that one reaches where one wants to if one knows in advance the path he
should tread on. Good managers not only see things as they happen, but also make things the way they wish them
to happen. To sum up, planning consists of setting up of objectives and then determining strategies, policies, and
procedures to realise these objectives.
Business planning can be defined as an integrated activity which seeks to optimise the total effectiveness of an
enterprise as a system to achieve its purpose.
Under this concept, it is necessary to appreciate the concept of hierarchy of plans:
1. Broad plans in the form of goals and objectives at the top management level. It is called a corporate plan.
2. Broad plans are broken down into detailed, meaningful and specific plan for each activity of a business. They
are called the departmental plans, e.g., a marketing plan, production plan, financial plan or manpower plan.
3. These plans are further subdivided into more detailed and more specific plans called activity plans.
In effect, the planning process is one which spreads out planning functions throughout the entire organisational
system. This implies that planning requires consideration of the enterprise as an integration of numerous
decision-making subsystems.
2. Organising:
Organisation is a mechanism through which the goals set in a plan are accomplished. Organising consists of
dividing the total workload. It follows the principle of division of labour. All similar activities are grouped
together. Good organising demands establishing relationships between the broken parts of the workload.
When the organisation is staffed with persons to perform a part of the total workload, a well-defined authority-
responsibility relationship comes into being. Authority percolates from the highest to the lowest level and
responsibility moves up from the lowest to the highest level. It is this authority-responsibility relationship which
facilitates the accomplishment of predetermined goals.
In short, a business organisation is a man-made system designed to combine a complex of men, materials,
machines and other resources into an efficient, effective and viable business enterprise.
3. Staffing:
The staff of an organisation is made up of persons who carry-out the work allotted to them. The organisation is so
staffed that it attains its objectives smoothly. Staffing, therefore, considers right selection through an appropriate
selection process. It also tries to foresee future manpower needs and plans how to acquire them and tries to
develop the persons employed in the organisation.
4. Directing:
Here, the manager directs the efforts of the staff towards a common goal. He acts as a leader for the group to do
so. He not only takes into account the capacity of his staff to do a particular work, but also sees to it that there is a
willingness on their part to do the work he desires them to do. Through communication, that is, exchange of
message with understanding, this process becomes meaningful. He also provides a climate for developing his
subordinates.
5. Controlling:
Any plan will be executed successfully only when it is controlled. Controlling means reviewing the performance
of the employees in the light of the targets of the plan. If there is any deviation from the planned objective, the
manager puts things right by taking proper corrective action.
Management at its best is a practice of the management process. That is why we hear someone saying that
management is neither an art nor a science, but a practice.
6. Coordination:
Many management experts regard coordination as a separate function of management. We depart from this
approach, since coordination is basically at work in all the element of management process, right from planning
to control. To coordinate means to integrate and to harmonize.
It ensures a proper tempo for all activities and avoids duplication of efforts. It provides for an optimum use of all
the resources. All plans are integrated into a master plan, so that they complement and supplement one another.
Organising depends on adequate coordination to ensure that the specialists do not run into different directions like
wild horses, but follow the desired path.
Directing is also a coordinating activity in as much as it tries to harmonize the personal aspirations of the staff
with the organisational goals. In controlling, those areas come to the surface where greater coordination is
needed. Plans are improved upon in the light of these findings.
Till now, we concentrated on what “management is in terms of the functions it performs”. The approach is
labelled as a management process approach, and constitutes one major school of thought of management theory.
The following paragraphs review briefly the other approaches towards management in terms of different schools
of management theory.
Management as a discipline includes interlocking functions of formulating corporate policy, organising, planning,
controlling and directing organisation’s resources to achieve the policy’s objectives.
The 3Ms of business are machines, materials and money. Management is the fourth M of business. It is a factor
of production. Drucker puts marketing and innovation as the basic tasks of management.

What are the Functions of Management – Planning, Organizing, Staffing, Directing and Controlling
Management is what management does. It is the art of getting things done through and with people in formally
organized groups.
Management includes two types of functions:
1. Preparation for actual work, i.e., management in preparation, which includes planning and organisation, and
2. Getting the actual work done, i.e., management in action, to include direction, motivation, coordination and
control.
A manager is a man who gets things done by working with people and other resources in order to achieve an
objective. He coordinates the activities of others rather than performs the operations himself.
According to George Terry, The four functions of management – planning, organizing, actuating and controlling
— constitute the management processes.
1. Planning:
Planning is the ongoing process of developing the business’ mission and objectives and determining how they
will be accomplished. Planning includes both the broadest view of the organisation, e.g., its mission, and the
narrowest, e.g., a tactic for accomplishing a specific goal. It involves taking decisions in advance of action.
The process of planning consists of:
i. Establishing objectives
ii. Making forecasts
iii. Formulating policies, procedures and rules
iv. Drawing programmes, schedules, budgets, etc.
2. Organizing:
Organizing is establishing the internal organisational structure of the organisation. The focus is on division,
coordination, and control of tasks and the flow of information within the organisation. It is in this function that
managers distribute authority to job holders.
The process of organizing involves:
i. Identifying the activities necessary to achieve the objectives
ii. Grouping the activities into manageable units
iii. Assigning duties or tasks to appropriate individuals
iv. Delegating necessary authority to individuals and fixing responsibilities for results
v. Defining authority — responsibility relationships among individuals
3. Staffing:
Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring,
training, evaluating and compensating are the specific activities included in the function. In the family business,
staffing includes all paid and unpaid positions held by family members including the owner/operators. It is
concerned with human resources. Its aim is to fit individuals and jobs, i.e., right man for the right job.
Staffing consists of the following activities:
Manpower planning, i.e., determining the number and quality of employees required in organization –
i. Recruitment, selection and placement
ii. Training and development
iii. Appraisal, promotion and transfer
iv. Employee remuneration, etc.
4. Directing:
Directing is influencing people’s behavior through motivation, communication, group dynamics, leadership and
discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organisation’s
mission and objectives while simultaneously helping them accomplish their own career objectives.
Directing is concerned with the execution of plans; it initiates organized action and breathes life into the
organisation. It constitutes the life spark of the enterprise and sets into motion like the electric power. Directing is
also known as management in action.
It involves:
i. Influencing, guiding and motivating the subordinates for the achievement of organisational objectives.
ii. Supervision, motivation, leadership and communication are the sub-functions of directing.
5. Controlling:
Controlling is a four-step process of establishing performance standards based on the firm’s objectives,
measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as
necessary. The essence of control is in determining whether the activity is achieving the desired results. It is to
ensure that everything in the organisation occurs in accordance with the predetermined plans.
The process of control consists of the following steps:
i. Setting standards or norms for the desired performance
ii. Measuring the actual performance
iii. Interpreting and comparing actual performance with the set standards
iv. Analyzing deviations to fix responsibility
v. Taking corrective actions
No business can succeed without proper planning and without direction; no plan can be put in operation. Better
operation and correct performance of business can be achieved only by motivation, co-ordination and control of
its different activities.

To decide whether management is science, art or profession, one has to comprehend the characteristics and
definitions of science, art and profession and associate them with management definition and traits.

Management as an Art:
Art is the experienced and personal utilisation of subsisting information to accomplish solicited outcomes. It can
be procured via education, research and practice. As art is involved with the personal utilisation of data some
kind of inventiveness and creativity is needed to follow the fundamental systems acquired. The essential
characteristics of art are as follows:

 The presence of theoretical knowledge: Art assumes the presence of specific academic knowledge.
Specialists in their particular fields have obtained specific elementary postulates which are appropriate to
a specific sort of art. For instance, the literature on public speaking, acting or music, dancing is publicly
acknowledged.
 Personalised application: The application of this primary information differs from person to person. Art,
hence, is a highly personalised notion.
 Based on custom and creativity: Art is practical. Art includes the creative practice of subsisting
intellectual knowledge. We know that music is based on 7 notes. However, what makes the style of a
musician different or distinctive is his performance of these notes in an artistic way that is uniquely his
own solution.
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Management as a Science:
Science is an organised collection of knowledge that emphasises definite universal truths or the action of
comprehensive laws. The central characteristics of science are as follows:

 The organised body of knowledge: Science is a precise entity of knowledge. Its systems are based on a
purpose and consequence association.
 Universal validity: Scientific conventions have global genuineness and application.
 Systems based on experimentation: Scientific conventions are originally formed via research and then
tested via repeated trial and error under the regulated situations.

Management as a Profession:
The profession can be described as an occupation upheld by specific education and practice, in which entry is
limited. A profession has the following features:

 The well-defined theory of knowledge: All services are based on a well-defined form of education that
can be procured through education.
 Restricted entry: The entrance to a profession is defined through an examination or through obtaining an
educational degree. For instance, to become a chartered accountant in India an aspirant has to clear a
detailed examination regulated by the Institute of Chartered Accountants of India (ICAI).
 Professional community: All professions are affiliated to a professional association which controls entry,
presents a certificate of training and expresses and supports a system of government. To be qualified to
study in India, lawyers have to become members of the Bar Council which monitors and regulates their
actions.
Management as an Art

(a) MANAGEMENT AS  Art refers to personal and skillful application of existing

AN ART knowledge to achieve desired results.
 It can be acquired through continuous practice, creativity,
personal observation and experience.
 Examples of being an artist: Dancer, Potter, Musician, Director,
Actor, Designer etc. all are artist in their respective fields.
 A manager is also an artist as he applies his personal knowledge
 and experience to get the work done from his subordinates.
 The way of getting work done by different people differs from
manager to manager.

(b) APPLICATION OF i. Existence of theoretical knowledge:

FEATURES OF ART IN

MANAGEMENT
 Art occupies existence of some theoretical knowledge,
though it is not compulsory for every field.
 Education in Management is imparted with the help of
theoretical knowledge in various colleges and universities.
 Examples- BBA, BBS, MBA etc.
ii. Personalized Application:


 Art is purely a personalized application of knowledge to a

particular field.
 Similarly getting the work done by the managers is purely
personalised application of their knowledge and
experience and their effectiveness vary from person to
person.
 Example:
 Voice of every singer is different;
 Acting style of each actor is different.
 So, the management style of every manager is different.
iii. Based on practice and creativity:

 Performance in any art is purely based on practice and the

creativity of an individual
 It varies from person to person.
 Similarly, every manager has his / her own unique style of
functioning and delivers results differently.
 Example:
 Bill gates manage a team of thousands of employees.
 Recent performance of new entrepreneurs like Rohit Bansal &
Kunl Bahl of ‘Snapdeal’ has shocked the established business
houses on the ability and creativity to generate revenue within a
very short period of time.

CONCLUSION  On the basis of above discussion, we have observed that the field
of management fulfills all features of art.
 Therefore, we can say, management is an art.

Q.1- “Voice of every singer is different; acting style of each actor is different. So, the management
style of every manager is different. Identity the statement and choose the correct answer.

a. Personalized Application
b. Existence of theoretical knowledge
c. Based on practice and creativity
d. None of the above

Q.2- ________________ in any art is purely based on practice and creativity.

a. Practice
b. Performance
c. Experience
d. Skills

Q.3- Which of the following is a characteristic of an art?

a. Existence of theoretical knowledge

b. Personalised Application
c. Based on practice and creativity
d. All of the above