Definitions and introduction to management and managerial functions

Management is the process of planning, organizing, leading, and controlling resources (human, financial, material, and informational) to achieve organizational goals effectively and efficiently. It involves coordinating and directing the efforts of individuals to work together towards common objectives.

Managerial functions are the core activities that managers perform to achieve organizational goals. While different theorists may categorize them slightly differently, the most commonly recognized functions are:

1. Planning: This involves defining organizational goals, establishing strategies to achieve those goals, and developing plans to integrate and coordinate work activities. It answers the questions of “what to do,” “how to do it,” “when to do it,” and “who is to do it.” Planning encompasses various aspects like:

   • Setting objectives: Defining specific, measurable, achievable, relevant, and time-bound (SMART) targets.
   • Developing strategies: Creating overall approaches for achieving objectives.
   • Creating operational plans: Detailing the specific steps and actions required to implement strategies.

2. Organizing: This function involves arranging and structuring work to accomplish organizational goals. It includes:

   • Determining what tasks need to be done.
   • Who is to do them.
   • How the tasks are to be grouped.
   • Who reports to whom.
   • Where decisions are to be made.
   • Designing the organizational structure.
   • Allocating resources.

3. Controlling: This function involves monitoring performance, comparing it with goals, and correcting any significant deviations. It ensures that activities are going according to plan. The control process generally involves:

   • Establishing standards: Setting benchmarks for performance.
   • Measuring performance: Assessing actual outcomes.
   • Comparing performance against standards: Identifying deviations.
   • Taking corrective action: Implementing changes to get performance back on track.

4. Decision Making: While sometimes considered a separate function, decision-making is integral to all other managerial functions. It involves choosing among alternatives to solve problems and capitalize on opportunities. Effective decision-making relies on:

   • Identifying a problem or opportunity.
   • Generating alternatives.
   • Evaluating alternatives.
   • Selecting the best alternative.
   • Implementing the decision.
   • Evaluating the outcome.

Interrelation of Functions:

These functions are interconnected and interdependent. Planning sets the stage for organizing, leading, and controlling. Organizing provides the structure for implementing plans. Leading motivates individuals to achieve goals, and controlling ensures that actions are aligned with plans. Decision-making occurs throughout all these functions.

In summary, management is about effectively utilizing resources to achieve organizational goals, and managerial functions provide the framework for managers to plan, organize, lead, and control activities, with decision-making as a crucial element underpinning all of these activities.