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A person who holds a management position inside an organization is required to think strategically and conceptually in order to achieve organizational

goals. This lesson will describe the four functions of management and how they relate to organizational success.

The Four Functions Of Managers


Management involves far more than just telling others what to do. Before any of you decide that you think you can do your boss's job, let's take a look into more of what a manager does. The major functions that a manager completes can be categorized into four different functions known asplanning, organizing, leading, and controlling. For some of us, we only see the final two - leading and controlling - but you should know that for every managerial behavior you do see, there is an equal amount that you do not. Behind the manager's closed door, he or she spends a good deal of his or her time planning and organizing so that he or she can effectively carry out the functions of leading and controlling.

Managers spend a good deal of time planning, leading, controlling and organizing. Now, before you think your boss is different, you should also know that the four functions of management are standard across industries, whether that be in a manufacturing plant, a home office, a grocery store, a retail store, a restaurant, a hotel, or even an amusement park. Effective managers understand how planning,

organizing, leading, and controlling are used to achieve organizational success. Unfortunately, I do not have a rebuttal for those of you who have ineffective managers, but perhaps learning a little more about the four functions of management will help to identify what steps your ineffective manager needs to take to become an effective one. Try to think about the four functions as a process where each step builds on the others. Managers must first plan, then organize according to that plan, lead others to work towards the plan, and finally evaluate the effectiveness of the plan. These four functions must be performed properly and, when done well, become the reason for organizational success.

Planning
The first of the managerial functions is planning. In this step the manager will create a detailed action plan aimed at some organizational goal. For example, let's say Melissa the marketing manager has a goal of increasing sales during the month of February. Melissa needs to first spend time mapping out the necessary steps she and her team of sales representatives must take so that they can increase sales numbers. These steps might include things like increasing advertisements in a particular region, placing some items on sale, increasing the amount of required customer-to-sales rep contact, or contacting prior customers to see if they are interested in purchasing additional products. The steps are then organized into a logical pattern so that Melissa and her team can follow them.

Plann ing is an ongoi ng step and can be highly specialized based on organizational goals, division goals, departmental goals, and team goals. It is up to the manager to recognize which goals need to be planned within his or her individual area. Planning is a highly specialized process and can be based on these goals.

Organizing
The second of the managerial functions isorganizing. This step requires Melissa todetermine how she will distribute resources and organize her employees according to the plan. Melissa will need to identify different roles and ensure that she assigns the right amount of employees to carry out her plan. She will also need to delegate authority, assign work, and provide direction so that her team of sales representatives can work towards higher sales numbers without having barriers in their way.

Leading
The third function of management is leading. In this step, Melissa spends time connecting with her employees on an interpersonal level. This goes beyond simply managing tasks; rather, it involves communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity. Not all managers are leaders. An employee will follow the directions of a manager because they have to, but an employee will voluntarily follow the directions of a leader because they believe in who he or she is as a person, what he or she stands for, and for the manner in which they are inspired by the leader.

Cont rolli ng
Cont rollin g is Leading involves connecting with employees on an interpersonal level. final function of management. Once a plan has been carried out the managerevaluates the results against the goals. If a goal is not being met, the manager must also take any necessary corrective actions to continue to work towards that goal. For example, if Melissa noticed that her team was behind in their sales half way through February, she will need to put in place necessary provisions to ensure the second half of February is twice as productive as the first half so that by the end the month, the original sales goal will be met or exceeded. Because the control process also includes setting performance standards for employees and continuously evaluating their job performances, Melissa will speak with each of her sales reps individually to review their performances. the

The Fifth Function

Staffing involves recruiting, evaluating, selecting and training individuals for jobs. Some have added a fifth function for managers known as staffing. Staffing is the task ofevaluating, recruiting, selecting, training, and placing appropriate individuals into defined job roles. A manager must spend time evaluating his or her workforce needs, discovering where employees need to be added, trained, or removed, and then making those changes so that the organization can continue business as usual.

Lesson Review
Let's review. There are four functions of management that span across all industries. They include:planning, organizing, leading, and controlling. You should think about the four functions as a process, where each step builds on the others. Managers must first plan, then organize according to that plan, lead others to work towards the plan, and finally evaluate the effectiveness of the plan. Planning is the first step where by a manager creates a detailed action plan aimed at some organizational goal. Organizing is the second step, which involves the manager determining how to distribute resources and arrange employees according to the plan. Leading is the third step that is accomplished by communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity. Controlling is the final function of management in which the manager, once a plan has been carried out, evaluates the results against the goals. If a goal is not being met, the manager must also take any necessary corrective action needed to continue to work towards that goal. Some have added

a fifth function for managers known as staffing. Staffing is the task of evaluating, recruiting, selecting, training, and placing appropriate individuals into defined job roles.

Management has been described as a social process involving responsibility for economical and effective planning & regulation of opera a dynamic process consisting of various elements and activities. These activities are different from operative functions like marketing, fin each and every manger irrespective of his level or status.

Different experts have classified functions of management. According to George & Jerry, There are four fundamental functions of manag According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control. Whereas Luther Gullick has given for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are fu ODONNEL i.e.Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others.

1. Planning

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
2. Organizing

It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

Identification of activities. Classification of grouping of activities. Assignment of duties.

Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & ODonell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements: Supervision Motivation Leadership Communication Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.
5. Controlling

It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished. Therefore controlling has following steps: a. Establishment of standard performance. b. Measurement of actual performance. c. Comparison of actual performance with the standards and finding out deviation if any. d. Corrective action.

Organizing Functions of Management The management process is composed of four functions, all of which are needed to have a successful Management Process. Organizing however is the second of the four functions. Organizing, grouped with planning, provides managers with control of all organizational aspects, the organizing function is said to be the most frustrating one. Collecting and arranging the financial, physical, informational, the human and other resources needed to reach goals, is what organizing consists of. Organizing activities include attracting people to the corporation, identifying job responsibilities, grouping jobs into work units, collecting and assigning resources, and creating circumstances so that people and things work together to achieve maximum success. (University of Phoenix, 2004) In basic terms, organizing means for a cause to be structured or ordered or operating according to some principle or idea. The focus of organizing is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders. In order to carry out a plan effectively, managers must organize priorities to accomplish the overall objective. Both the managers and the organization must be able to develop major subsystems, such as departments, programs, divisions, and teams. Individually, each of these subsystems has a responsibility. Often, these systems and processes are

defined by plans, policies, and procedures. In the facility of Metro Regional Youth Detention Center, there are policies and procedures in place. There are also a number of different departments set in place to carry out the various tasks involved in operating such an organization. Mainly, it is the job of the security staff to ensure that the youth adhere to the schedule, the policies, and the procedures..

Organizational Function of Management Organization follows planning in the hierarchy of the functions of management. This is where financial and physical resources are combined to achieve desired results. Key leadership achieves organization with the help of the following steps: identifying activities, departmental organization, delegation of authority, and establishing responsibility. Organization also involves attracting qualified personnel to the organization, collecting and assigning resources and creating an environment where all major departments and components of an organization can co-exist and achieve optimum success. Of the four functions of management, this is the most tedious and time-consuming. This paper will explore the organizational structure of Best Buy and how well they manage their human resources. The paper will also explain how Best Buy maintains its technological advantage over its

competitors. In 1966, Richard M. Shulze and his partner, James Wheeler established Sound of Music, Inc., an audio specialty store in St. Paul, Minnesota. In 1971, Shulze bought out his partner and began to expand the operation. Up until the early eighties, Sound of Musics product offerings were limited to home and car audio components. A weeklong management seminar in 1981 was an epiphany for Shulze. He realized he needed to expand his product line and target an older and more affluent demographic. This new line of thinking began to bear fruit as the company reported $9.3 million in 1982. In 1983, Sound of Music Inc. officially changed its name to Best Buy Co., Inc. The following year, Shulze implemented the superstore format and captured 42 percent of the local market share. Best buy was taken public the following year, raising $8 million dollars through an initial public offering (IPO). In 1987, the company earned its own listing on the New York Stock Exchange (NYSE). Best Buys organizational structure consists of the CEO and Co- Presidents in char

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