Functions of Managers

Regardless of the type of the industry, the functions involved in an organization, or the organizational level at which one functions; every manager has to perform certain basic managerial functions such as planning, organizing, staffing, leading and controlling.

• Planning is the process of setting goals, and charting the best way of action for achieving the goals. This function also includes, considering the various steps to be taken to encourage the necessary levels of change and innovation.

For example, if a company is planning for a promotional campaign, then the manager responsible for the campaign has to chart out actions that are in the best interest of the firm.

• Organizing is the process of allocating and arranging work, authority and resources, to the members of the organization so that they can successfully execute the plans.

In many retail outlets, departments are organized (inventory department etc.), based on the nature of the job (product packing, grading, pricing, inventory etc.,)

• Staffing consists of recruiting, training and developing people, who form part of the organized efforts to contribute towards organizational growth.

For instance, recruiting programmers and analysts for a company. Training and developing them to achieve organizational goals forms a part of the staffing activity.

• Leading involves directing, influencing and motivating employees to perform essential tasks. This function involves display of leadership qualities, different leadership styles, different influencing powers, with excellent abilities of communication and motivation.

For instance, Sam Walton - founder of Walmart, leadership style was instrumental for the roaring success achieved by the retail giant. He always enjoyed interacting with his employees. He also made it a practice to visit each store, at least once in an year. He also insisted that the top level executives should visit the stores, and interact with employees.

• Controlling is the process of devising various checks to ensure that planned performance is actually achieved. It involves ensuring that actual activities confirm to the planned activities. Monitoring the financial statements, checking the cash registers to avoid overdraft etc., form part of this process.

The Essentials of control activities are:

• Setting performance standards

• Determining the yard-stick for measuring performance

• Measuring the actual performance

• Comparing actuals with the standard

• Taking corrective actions, if actuals do not match with standards

What is Management? Definition of Management

Harold Koontz and Heinz Weihrich define management as “the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”

Louis E. Boone and David L. Kurtz define management as “the use of people and other resources to accomplish objectives.”

Dalton E. McFarland defines management as “a process, by which managers create, direct, maintain, and operate purposive organizations through systematic, coordinated, cooperative human effort.”

Mary Parker Follet termed management as “the act of getting things done through people.”

Definitions by Follet and Louis E. Boone and Kurtz call attention to the fact that managers achieve organizational goals by getting others to do the necessary tasks. The other two definitions suggest that management is much more than “just getting the work done” and suggest the following aspects of management

1. Managers carry out the functions of planning, organizing, staffing, leading and controlling: Henry Fayol was the first management thinker to outline the five basic functions carried out by managers. Every manager performs these basic functions. These functions are discussed in detail in the later part of this chapter.

2. Management is essential to any kind of organization: Wherever there are groups of people working together to achieve some common objectives, it becomes essential to guide, organize and control them. The term ‘management’ applies to any organization irrespective of the size or nature of operations. The prime concern of a CEO of a multinational company, the General Manager of a hotel, the first-level supervisor, the manager of a cricket team and the student president in a college is to manage their people and resources effectively.