2. What Are the 4 Basic Functions of Management
2. What Are the 4 Basic Functions of Management
You may take on a managerial role and need to familiarize yourself with
management fundamentals. The functions of management are consistent
regardless of the type of business or organization a manager works for. All
managers perform the four basic functions of planning, organizing, leading and
controlling, though some will spend more time on some functions than others
depending on their managerial role in an organization.
In this article, we will look at the basic functions of management and their
importance in achieving organizational objectives.
Planning
Organizing
Leading
Controlling
Planning
In the planning stage, managers establish organizational goals and create a course
of action to achieve them. During the planning phase, management makes strategic
decisions to set a direction for the organization. Managers can brainstorm different
alternatives to achieve the objective before choosing the best course of action. While
planning, managers typically conduct in-depth analysis of the organization’s current
state of affairs, taking into consideration its vision and mission and evaluating what
resources are available to meet organizational objectives.
While planning, managers usually evaluate internal and external factors that may
affect the execution of the plan, such as economic growth, customers and
competitors. They also establish a realistic timeline for achieving the goal or goals
based on the organization’s available finances, personnel and resources. Managers
may have to take additional steps, such as seeking approval from other departments,
executives or their board of directors before proceeding with the plan.
There are several approaches to planning:
Strategic planning: This type of planning is often carried out by an
organization’s top management and usually creates goals for the entire
organization. It analyzes threats to the organization, evaluates the
organization’s strengths and weaknesses and creates a plan of how the
organization can best compete in its environment. Strategic planning usually
has a long timeframe of three years or more.
Tactical planning: Tactical planning is the shorter-term planning of an
objective that will take a year or less to achieve. It is usually carried out by an
organization’s middle management. Tactical planning is usually aimed at a
specific area or department of the organization such as its facilities,
production, finance, marketing or personnel.
Operational planning: Operational planning is the process of using tactical
planning to achieve strategic planning and goals. Operational planning creates
a timeframe for putting a portion of the strategic goal into practice
operationally.
Organising
The purpose of organizing is to distribute the resources and delegate tasks to
personnel to achieve the goals established in the planning stage. Managers may
need to work with other departments of the organization, such as finance and human
resources, to organize the budget and staffing. During the organizing stage,
managers strive to create a work environment conducive to productivity. Managers
typically take employees’ motivation and aptitude into account to match employees
with roles and tasks that best fit their abilities.
When assigning team member roles, managers should explain and ensure that
employees understand their individual duties. To help employees feel engaged and
productive, managers should ensure that employees are assigned an appropriate
amount of work and an appropriate amount of time to complete their work.
Here are some examples of the organizing function:
If the company’s brand manager works part-time and the organization’s goal is
to launch a new advertising campaign for a product, the brand manager may
not take on the significant responsibility of managing the campaign besides
their regular duties. The company may hire an advertising agency to help with
the promotion of the product.
If a company’s sales in a geographic area have grown exponentially,
management may plan to split the territory in two and need to divide the
current team working in the territory and hire additional staff members as
needed.
Leading
Leading consists of motivating employees and influencing their behavior to achieve
organizational objectives. Leading focuses on managing people, such as individual
employees, teams and groups rather than tasks. Though managers may direct team
members by giving orders and directing to their team, managers who are successful
leaders usually connect with their employees by using interpersonal skills to
encourage, inspire and motivate team members to perform to the best of their
abilities.
Managers can foster a positive working environment by identifying moments when
employees need encouragement or direction and using positive reinforcement to
give praise when employees have done their jobs well.
Managers usually incorporate different leadership styles and change their
management style to adapt to different situations. Examples of situational
leadership styles include:
Directing: The manager leads by deciding with little input from the employee.
This is an effective leadership style for new employees who need a lot of initial
direction and training.
Coaching: The manager is more receptive to input from employees. They may
pitch their ideas to employees to work cooperatively and build trust with team
members. This style of leadership is effective for individuals who need
managerial support to further develop their skills.
Supporting: The manager decides with team members but focuses more on
building relationships within the team. This style of leadership is effective for
employees who have fully developed skills but are sometimes inconsistent in
their performance.
Delegating: The leader provides a minimum of guidance to employees and is
more concerned with the vision of the project than day-to-day operations. This
style of leadership is effective with employees able to work and perform tasks
on their own with little guidance. The leader can focus more on high-level goals
than on tasks.
Related: 15 Leadership Qualities That Make a Great Leader
Controlling
Controlling is the process of evaluating the execution of the plan and making
adjustments to ensure that the organizational goal is achieved. During the controlling
stage, managers perform tasks such as training employees as necessary and
managing deadlines. Managers monitor employees and evaluate the quality of their
work. They can conduct performance appraisals and give employees feedback,
providing positive remarks on what they are doing well and suggestions for
improvement. They may also offer pay raise incentives to high-performing
employees.
Managers may need to make adjustments such as:
Budget adjustments: Managers monitor the budget and resources to ensure
that they are using the resources available and not going over budget. For
example, a manager may notice that she is going over budget on a project but
be unsure what is causing the project to go over budget. In this situation, she
will need to identify whether there is a general problem with overspending or
whether one department, in particular, is going over budget. Once the manager
identifies the source of the overspending, she must take action to curb overall
spending and make cuts as necessary to balance the budget.
Staffing adjustments: Managers may need to make challenging decisions
such as whether to reassign an employee who produces a low-quality work to
a different task or dismiss them from a project. They may also need to add
additional team members to meet an organizational goal if they conclude that
the team is understaffed. If this is the case, they may also need to consult with
organization executives to secure more funding.