Functions of Management

4.1 Planning

Planning is the primary function — deciding in advance what to do, how to do it, when to do it, and who is to do it. It bridges the gap between the present position and desired future position.

Types of plans:

• Mission/Vision: Organisation's fundamental purpose and long-term aspiration
• Objectives: Specific, measurable, time-bound desired outcomes
• Strategies: Broad approaches to achieve objectives (answering "how")
• Policies: General guidelines for decision-making
• Procedures: Specific steps for performing activities
• Rules: Specific required actions in specific situations
• Budgets: Plans expressed in numerical/financial terms
• Schedules: Time-bound action plans

Steps in planning process:

1. Setting objectives
2. Analysing the environment (opportunities and threats)
3. Identifying alternatives
4. Evaluating alternatives
5. Selecting best alternative
6. Implementing the plan
7. Follow-up and review

4.2 Organising

Organising is the arrangement of resources and tasks to achieve goals. Key concepts:

• Formal organisation: Deliberately designed structure with defined authority, responsibility, and relationships
• Informal organisation: Spontaneous social relationships and networks that emerge within the formal structure
• Line authority: Directly exercised downward in chain of command
• Staff authority: Advisory authority — specialists advise line managers
• Functional authority: Authority of specialists over specific functions across departments

Principles of organisation:

• Unity of Command (Fayol)
• Unity of Direction
• Span of Control
• Scalar Chain
• Delegation of Authority

4.3 Staffing

Staffing involves human resource management: recruitment, selection, placement, training, development, compensation, and performance appraisal. (Covered more deeply in Topic 49 — HRM.)

4.4 Directing

Directing is the function of guiding, leading, and motivating subordinates to achieve organisational goals. Key elements:

• Communication: Transmitting information (formal/informal channels; upward/downward/lateral)
• Leadership: Influencing others toward goals (Autocratic/Democratic/Laissez-faire styles)
• Motivation: Stimulating action toward goals (Maslow, Herzberg, McGregor — covered in T047)
• Supervision: Overseeing work performance of subordinates

4.5 Controlling

Controlling measures performance against standards and takes corrective action. Steps:

1. Establish performance standards (quantitative benchmarks)
2. Measure actual performance
3. Compare actual with standards
4. Identify deviations
5. Analyse causes of deviations
6. Take corrective action

Types of control:

• Feedforward/Preventive control: Before the activity (e.g., pre-employment testing)
• Concurrent control: During the activity (e.g., real-time supervision)
• Feedback control: After the activity (e.g., performance appraisals)

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