Functions of management

The 4 basic functions of management process are:

1. Planning and decision making

2. Organizing
3. Leading
4. Controlling

“Best Practice”

Commercial or professional procedures that are accepted or prescribed as being

correct or most effective or (as superior to any alternatives because it produces
results that are superior to those achieved by other means).

Organizations are efficient when they manage resources to maximize their utility in
the process of producing a good or service. Organizations are effective when they
achieve qualitative goals and targets that are customer centric, such as satisfaction.

“Efficiency is doing things right; effectiveness is doing the right thing” (Drucker,
1974)

Husam Abdelkhaliq Alex MBA Group A

 1- Planning
The Function Planning.
The Result Objectives, policies, procedures and methods.

What is to be done?
Who is going to do it?
How are they going to complete the task?
The function of management is to create a ‘road’ map’ to success for the
organization.
Planning is an ongoing and continuous process that requires management to
monitor progress as well as the business, social and governmental
environments to identify new and emerging opportunities for an
organization. (Thorn, 2012).
A direct outcome of the panning function is the development of strategy and
tactics to accomplish the objectives defined by the planning function.
So, How to plan?

1. Gain knowledge of the issues

2. Look into the future
3. Determine the objectives
4. Create flexible structures

2- Organizing
The Function Organizing
The Result Work division, work assignment, and authority utilization

Organize the workplace in a manner that allows people and groups of people
to work together to achieve the goals of the organization, deploy resources,
both human and material, in a manner that aligns these resources to
produce the greatest possible outcome.
One of the outcomes of organization is the concept of organizational
structure. Grouping people into departments, work units, or other
operational entities defines these interactions as does the hierarchy and
leadership structure required to help the organization reach its potential.

Husam Abdelkhaliq Alex MBA Group A

So, How to Organize?
1. Identify activities and classify them
2. Assign the duties and resources
3. Delegate authority and create responsibilities
4. Co-ordinate authority and responsibilities

3- Controlling
The Function Controlling.
The Result Reports, comparisons, costs and budgets.

The domain of the controlling function is that to measure performance and

ensure the organization stays on track.
Control cannot exist without plans, goals, and objectives and it is practice at
all levels of management within an organization.
So, How to Control?
1. Establish standards of performance
2. Measure the actual performance
3. Compare the actual performance with the expected standards
4. Take corrective action

4- Leading
The Function Directing - leading
The Result Leadership, communication, development, and incentives

Great achievements will not be accomplished without leadership.

Leadership task includes creating a vision, focus and direction for the
organization that will encourage employees to work at high levels and to
ensure their activities are coordinated to achieve maximum results for the
organization.

Husam Abdelkhaliq Alex MBA Group A

According to Peter Drucker;

“No institution can possibly survive if it needs geniuses or supermen to manage it.
It must be organized in such a way as to be able to get along under a leadership
composed of average human beings.”

Hence, an organization is not manned by one person but by a team that are
dedicated to achieving a common goal to succeed, where the terminology of
Functional team takes place. A true leader works alongside the team as a coach and
mentor.

So, How to direct - Lead?

1. Supervision
2. Communication
3. Motivation
4. Leadership

Leadership is about behaviors and creating the conditions for success, The
Five Practices of Exemplary Leadership model define the transformational
leader (Kouzes & Posner, 1995);
1. Model the way – leaders become role models and demonstrate,
through action, how members of the organization should treat each
other and their customers.

2. Inspire a shared vision – leadership is about establishing a vision and

then promoting that vision in their actions, thoughts, and speech.

3. Challenge the process – Leaders do not settle for the status quo, they
constantly seek improvement and take risks. They understand risk
taking leads to mistakes and create a climate where mistakes are
learning opportunities.

4. Enable others to act – Leaders encourage and develop teams that

show mutual respect and that sustains effort. They create an
atmosphere of trust that encourages all to feel capable and engaged.

5. Encourage the heart – Leaders recognize and acknowledge

contributions from others. They make people in the organization feel
valued and needed.

Husam Abdelkhaliq Alex MBA Group A

 P.S. In 1976, Harold Koontz and Cyril O’Donnell published an essay
Management: A Systems and Contingency. Analysis of Managerial Functions,
Koontz and O’Donnell believed there to be five key functions of
management:
1. Planning
2. Organizing
3. Staffing
4. Directing/Leading
5. Controlling

Table: Comparison of US VS Japanese management styles:

United States Management Japanese Management

! Primarily short-term orientation
! Individual decision-making
! Involvement of a few people in making and
“selling: the decision to people with
divergent values
Planning ! Decisions are initiated at the top and flow
down
! Fast decision-making; slow implementation
requiring compromise, often resulting in
suboptimal decisions
! Individual responsibility and accountability
! Clarity and specificity of decision
responsibility
! Formal bureaucratic organizational
Organizing structure
! Lack of common organization culture;
identification with profession rather than
with company
! Leader acts as decision-maker and head of
group
! Directive style (strong, firm, determined)
! Often divergent values; individualism
Leading sometimes hinders cooperation
! Face-to-face confrontation common;
emphasis on clarity
! Communication primarily top-down
! Control by superior
! Control focus on individual performance
Controlling ! Fix blame
! Limited use of quality control circles
! Long-term orientation
! Collective decision-making (ring) with
consensus
! Involvement of many people in preparing and
making the decision
! Decision flow from bottom-to-top and back
! Slow decision-making; fast implementation of
the decision
! Collective responsibility and accountability
! Ambiguity of decision responsibility
! Informal organization structure
! Well-known common organization culture and
philosophy; competitive spirit toward other
enterprises
! Leader acting as social facilitator and group
member
! Paternalistic style
! Common values facilitating cooperation
! Avoidance of confrontation, sometimes
leading to ambiguities; emphasis on harmony
! Bottom-up communication
! Control by peers
! Control focus on group performance
! Saving face
! Extensive use of quality control circles

Husam Abdelkhaliq Alex MBA Group A

References
1. https://iedunote.com/function-of-management-process
2. https://www.ligsuniversity.com/en/blogpost/management-the-four-
functions
3. https://www.cleverism.com/functions-of-management-planning-
organizing-staffing/
4. Industrial Management © Heinz Weihrich

Husam Abdelkhaliq Alex MBA Group A