Table of Contents
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.
Planning is an ongoing 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.
Organizing
The second of the managerial functions is organizing. This step requires Melissa to determine 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.
Controlling
Controlling is the final function of management. Once a plan has been carried out, the manager evaluates 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.
Staffing
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. 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.
Lesson Objectives
After watching this lesson, you should be able to:
- Identify each of the four functions of management
- Explain each function’s role in organizational success
- Recognize ‘staffing’ as a fifth function in some industries
