THE 5 FUNCTIONS OF MANAGEMENT

The functions of management according to Harold Koontz and Cyril

ODonnell are Planning, Organizing, Staffing, Directing, and Controlling.
Although there are different classifications of the functions of management from
other experts, the five related functions given by Koontz and ODonnell are
generally accepted.
A. PLANNING
Based on Koontz and ODonnells definition, Planning is deciding in
advance what to do, how to do and who is to do it. Planning bridges the gap
between where we are to, where we want to go. It makes possible things to occur
which would not otherwise occur. Hence, it requires foresight and sound
judgement, because it involves the laying down of objectives and determining the
courses of action to achieve those objectives. That is why Urwick has said that
Planning is a mental predisposition to do things in orderly way, to think before
acting and to act in the light of facts rather than guesses.
As a continuous and never-ending process, it provides the basis for the
future and for evaluating the performance with the pre-determined standards. It is
required to ensure effective utilization of human and non-human resources to
accomplish the desired goals. A successful plan depends on the ability of a
manager to forecast future situations correctly and accurately. Thus the process
of planning involves the following activities or steps:
1. Laying down objectivesthe determination of organisational objectives,
and the formulation of plans, policies, strategies, and programmes, procedures
and schedules to achieve the desired organisational objectives.
2. Developing planning premiseswhich are the statements of
assumptions that will serve as basis of planning.
3. Searching alternative courses of actionwhere each and every
alternative will be evaluated by weighing its pros and cons in the light of
resources available and the requirements of the organization, so that the best
alternative is chosen.
4. Formulation of derivative plansare the sub plans or secondary plans
which help in the achievement of the main plan.
5. Securing Co-operationby being involved in the decision-making
process, subordinates will be motivated and they will be more interested in the
execution of these plans.
6. Follow up/Appraisal of plans is done on the basis of feedback or
information received from the various departments or employees concerned.

B. ORGANISING
Once planning is effected, the people in the organization have
to be organised. It is an important activity by which
management brings together the manpower and material
resources for the accomplishment of pre-determined goals.
Organising is the process of establishing relationships among
the members of the organization. This relationship
is created in the form of authority and responsibility. Each

member in the organization is assigned a specific duty to

perform and is granted the corresponding authority to do it.
In the words of Louis A. Allen, Organization is the process
of identifying and grouping the work to be performed and
dividing it among the individuals and creating authority and
responsibility relationship among them for the
accomplishment of objectives. The process of organising thus
involves the following activities:
1. Identifying the activities involved in achieving the objectives
2. Grouping the activities into a logical pattern
3. Assigning the activities to employees
4. Delegating authority and fixing responsibility
5. Coordinating the authority-responsibility relationships of
various activities.
Organising means bringing together the manpower and other resourses viz.,
men, money, machinery, materials etc., and putting them into working order for
the achievement of objectives laid down in the enterprise. Louis Allen defines
organisation as "The process of identifying and grouping the work to be
performed, defining and delegating responsibility and authority, and establishing
relationship for the purpose of enabling people to work most effectively together
in accomplishing objectives".
The process of organisation involves the following steps:
1. To identify the work to be performed;
2. To classify or group;
3. To assign these groups of activities or work to individuals;
4. To delegate authority and fix responsibility;
5. To establish structural relationships.
Organizing is the part of managing that involves establishing an intentional
structure of roles for people to fill in an organization. The purpose of an
organization
structure is to creating an environment helpful for human performance. It is then
management tools and not an end. Although the structure must define the task to
be
done, the rules so established must also be designed in the light of the abilities
and
motivations of the people available designing an effective organization structure
is not
an easy managerial task. Many problems arises in making structures fit
situations.

Organising
According to Henri fayol To organise a business means to provide it with
everything useful to its functioning-raw materials,tools,capital and
personnel
Steps in organising
Identifying the activities required for achieving objectives.
Classifying these activities in to convenient groups
Assigning the group of activities to appropriate persons.
Delegating authority and fixing responsibilities.
Coordinating Authority Responsibility relationship throughout the
enterprise.
Importance of organising
Sound organisation facilitate growth and diversification
Optimum use of human resources by matching work with talent
Maintain good harmonious structure in the office

Group activity is equivalent to social structure of organisation

It is a mechanism of management to direct ,controls and coordinates the
activities of enterprise.

C. STAFFING
Manpower planning, i.e. determining the number and the
kind of personnel required
2. Recruitment of personnel
3. Selection of the most suitable personnel
Manpower planning, i.e. determining the number and the
kind of personnel required
2. Recruitment of personnel
3. Selection of the most suitable personnel
Placement and orientation of employees
5. Training and development of employees
6. Proper evaluation of employees
7. Transfer, promotion, termination, and layoff of employees.
Staffing involves filling and keeping filled, the positions in the organization. This is
done by identifying the work force requirement inventorying the people available
and
recruiting, selecting, placing, promoting, appraising, planning the careers,
compensating
and training.
This function involves manning the positions created by the organisation process.
It is concerned with human resourses of an organisation. According to Koontz
and O'Donnell, "The managerial function of staffing involves manning the
organisation structure through proper and effective selection, appraisal and
development of personnel to fill the roles designated into the structure". Thus,
staffing consists of the following:
1. Man power planning i.e., assessing manpower requirements in terms of
quantity;
2. Recruitment, selecting and training;
3. Placement of manpower;
4. Development, promotion, transfer and appraisals;
5. Determinations of employee remuneration.

Staffing
It is concerned with the Human resources of the enterprise.
It is concerned with acquiring,developing,utilising,and maintaining human
resources.
It is a process of matching jobs with individuals to ensure right man for the
right job.
Definition of staffing
According to koontz and O Donnel The managerial functions of staffing
involves manning the organisational structure through proper and effective
selection, appraisal and development of personnel to fill the roles
designed in to the structure.
Steps in staffing
Manpower planning

Recruitment,selection,placement
Training and development
Appraisal ,promotion and transfer
Employee remuneration
Features of staffing
It is a function of management
It is an integral part of the process of management.
It is concerned with the human resources
It is a pervasive function
Aims at optimum utilisation of human resources.
Importance of staffing
It helps in discovering and obtaining competent employees for for various
job.
It improve the quantity and quality of output by putting right man for right
job.
It improves job satisfaction of employees
It reduces cost of personnel by avoiding wastage of human resource.
It facilitates the growth and diversification.

D. DIRECTING
Directing is otherwise called management in action. It is
concerned with the actuating of the members of the
organization for the accomplishment of the enterprise goals. In
the words of George R. Terry, Directing means moving to
action and supplying stimulative power to the group. Directing
thus involves issuing instructions (or communication) to
subordinates, guiding, motivating and supervising them.
Directing is concerned with those activities which deal with instructing,
influencing, guiding, motivating and supervising the subordinates in their work.
The function of directing involves the following activities:
1. Communication: Communication is the process of passing information from
one person to another. It involves systematic telling, listening and understanding.
2. Leadership: Leadership is the process of influencing the behaviour of
subordinates, and guiding and leading the subordinates in the proper and
systematic performance of work.
3. Motivating: It is the task of inspiring the subordinates to do their work with
interest and enthusiasm for the accomplishment of the goals of the organisation.
4. Supervision: Supervision means overseeing the work performance of the
subordinates.
An organisation is divided and sub-divided into different segments or sections for
the purpose of reaping the benefits of specialisation. Because of the division of
activities, it is necessary to synchronize, harmonize or, unify the activities of the
various groups of people towards the attainment of the objectives of the
enterprise. Co-ordination is the orderly arrangement of group efforts for unifying
the actions of the various groups for achieving the common goals of the
organisation.
Leading is influence people so that they will contribute to organization and group
goals. All managers would agree that most problems arises from peoples desires
and
problems , their behavior as individuals and in groups and that effective
managers also
need to be effective leaders. Leading involves motivation, leadership styles and

approaches and communications.

Directing
It is concerned with the execution of plans through organised action.
It is also known as commanding or actuating
DEFINITION
Direction consist of the process and techniques utilised in using
instructions and making certain that operations are carried out as planned

E. CONTROLLING
Controlling is the process of seeing whether the activities have
been performed in conformity with the plans. It helps the
management to get its policies implemented and to take
corrective actions if performance is not in accordance with the
planned objectives. In the words of E.F.L. Brech, Controlling
is the process of checking actual performance against the agreed
standards with a view to ensuring satisfactory performance.
The process of controlling thus involves the following:
1. Determination of standards for measuring work
performance
2. Measurement of actual performance
3. Comparing actual performance with the standard
4. Finding variance between the actual and the standard and the
reasons for the same
5. Taking corrective action to ensure attainment of objective
These functions are so interlinked, that in actual practice it is not
possible to separate them from another. Planning provides the
leases for control and control gives meaning to planning. An
efficient system of control helps to predict deviations well in
time and to initiate corrective steps before the loss occurs.
Controlling is concerned with seeing that all activities of the enterprises are being
conducted in conformity with the plans. Controlling may be defined as
"determining what is being accomplished, that is, evaluating the performance and
if necessary, applying corrective measures so that the performance takes place
according to plans".
The process of controlling involves the following steps:
1. Establishing standards of performance;
2. Measuring actual performance with the standard;
3. Comparing the actual performance with the standard;
4. Finding the variances or deviations, if any, and
5. Taking corrective actions or measures.
Controlling is measuring and correcting individuals and organizational
performance. It involves measuring performance against goals and plans,
showing
where the deviations from standards exit and helping to correct them. In short
controlling facilitates the accomplishment of plans.Controll activity generally
relate to the
measurement of achievement. Some means of controlling like the budget for
expenses,
inspection, record of labors-hours lost, are generally familiar. Each shows
whether plans
are working out.