Running head: FUNCTIONS OF MANAGEMENT 1

Functions of Management

Management is the process of working with people and resources to accomplish

organizational goals (Bateman, Snell, 2009). Successful organizations are able to use the

functions of management to develop functional business plans which are effective in maintaining

their competitive advantage to ensure future successes. The four traditional functions of

management are: planning, organizing, leading, and controlling (Bateman, Snell, 2009). The

intended result of management is the use of an organization's resources in a way that

accomplishes its mission and objectives (Higgins, 1994). Developing these plans requires

detailed knowledge of the organization and its purpose as well as being able to understand and

anticipate the intended customers and the applicable markets. Placing the plans into action will

require forming groups and determining the functions of personnel and how the personnel in the

organization will relate to each other. Finally, a method of control directs the plan's

development. In order for these practices to succeed in an operational manner, an understanding

must be reached concerning the basics in which these practices are in relationship to the business

structure. (Bateman, Snell, 2009).

The Four Management Functions:

Planning

Planning is the first of the four functions of management. The main difference between a

successful and an unsuccessful manager is usually found in his or her ability to plan. Planning is

the logical thinking through goals and making the decision regarding what must be accomplished

to reach the organizations’ objectives. Managers use this process to determine future plans,

predict problems, decide on necessary actions to avoid difficult issues and to analyze the
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competition (Bateman, Snell, 2009). Planning is the initial step in managing and if done

correctly will provide the necessary objectives to lead to decision making and avoid mistakes

that might lead to ruin. Nabors Drilling International is a global company that has acquired a

wide variety of smaller companies in the past decade. My experience with Nabors is somewhat

limited, as I only have been with the company for a little over one year. I am sure that Nabors

provides a plan to the board of directors and I have read the Mission, Vision, and Values

Statement. It seems to me that the plan is not advertised throughout the company and I have not

been provided training on the company’s mission or vision objectives. While I was active duty

in the Navy, each command was responsible for developing their own objectives and training

was provided every year. While in the Navy, I was always given status updates of where the

command was in goals and objectives. At Nabors, I have not seen any objectives or goals from

the different country offices, only from headquarters. I don’t believe that the plan is shared or

that the objectives are created at the lower field offices. Although Nabors is a large and

successful company, outside of headquarters, there does not appear to be a management

philosophy that other divisions of the company shares.

Organizing

After determining an objective in the planning process, it becomes necessary to

determine the structure of the organization and how the plan will be executed. Organization will

be the determination of which individual or team will be responsible for different assignments

and responsibilities to accomplish the common objective. A manager must know their

subordinates and what they are capable of in order to organize the most valuable resources a

company has, its employees (Bateman, Snell, 2009). Management must determine the correct

assignments, provide training, ensure that adequate resources are available and provide adequate
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guidance on expectations. It is also important to ensure that the makeup of teams and the

individual’s assignments are coordinated to place the correct personnel in the best fit for their

abilities and personalities. Where Nabors seems to be weak in the communication of their plan,

they have a strong organizational structure. Personnel are moved between country offices to

ensure that the right personnel are in the best fit for continued success. The company has a

strong training program that ensures that personnel are knowledgeable on the latest technologies

and safety issues. I have found the matrix organizational structure to be confusing at times. I

would prefer to have one person to answer to all of the time and it is also difficult for me, as the

project manager, to determine where I fit in at times, especially when I have to share resources.

Resource management is also difficult, but much of this might be a product of the remote

locations in foreign countries. Repair parts and replacement materials are long lead time

problems much of the time and seems to be a major contributor to down time. Personnel are also

a resource issue, there is a significant turnover of skilled technicians and it poses problems with

continuity and repair times.

Leading

The quality of leadership will determine the success of the organization. Leadership

involves the interpersonal characteristic of a manager's position that includes communication and

close contact with team members (Bateman, Snell, 2009). The ability to influence people’s

behavior through motivation, communication, group dynamics, and discipline are characteristics

of good leadership. Previously I believed that leadership training was not of much use, but since

leaving the military I have changed my opinion. I have found that without the training in

leadership styles and methods, that there are a larger percentage of leaders who use old

techniques that have been abolished from many organizations. I believe that many of the
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personnel involved are leading as they were led and believe that this is the only acceptable

method to lead. I believe that on the local level, Nabors would be better served providing more

leadership training which in turn would provide a better working environment. Although Nabors

has policies in place that discourage this type of behavior, it does not appear to be adhered to and

is prevalent through the management structure. I believe that this area could be significantly

improved upon and have discussed it with the Area Supervisor.

Controlling

The controlling process ensures that the plan is being executed correctly. Controls also

verify that the quality of the product and customer’s needs are being adequately addressed. If

there is a problem, the controlling process will provide a means to correct the direction or make

adjustments to the plan to ensure long-term success. Gemmy Allen stated that ‘Controlling is the

final link in the functional chain of management activities and brings the functions of

management cycle full circle.’ The control process is also valuable in allowing for success in

delegating responsibilities and fostering accountability of managers for their subordinates

thereby, encouraging timely feedback of subordinates performance ((Plunkett, Attner, Allen,

2005). Nabors monitors customer feedback and is very responsive to customer wishes. Daily

meetings with customers and the field office provides a forum expeditiously manage any

customer or project concerns. I am not in a position to provide an accurate or intelligent

assessment of Nabors’s full control process, as I am not able to see the information used at

headquarters in regard to planning.

While management techniques continue to evolve and the need to be innovative and think

in new directions is critical, the fundamental functions of management have remained consistent.

Ideas in management have seen dramatic changes in the recent past and new innovations have
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had a significant effect on how managers plan and organize. Great executives will not only

adapt to these changing conditions, but will also apply the fundamental management principles

consistently and with discipline (Bateman, Snell, 2009)

References
Bateman, T. S. & Snell, S. (2009). Management: Leading and Collaborating in a Competitive
World (8th ed., pp. 19 -22). McGraw - Hill.
Higgins, James (1994). The Management Challenge (2nd ed.). Macmillan.
Plunkett, R., Attner, R., and Allen, G. (2005). Management: Meeting and Exceeding Customer
Expectations (8th ed.). South-Western/Thomson.