Functions_of_Management

Functions of Management MGT/330 June 21, 2010 Functions of Management The functions of management were first discussed in 1916, when Henri Fayol published his book titled Administration Industrielle et Generale. In Fayol’s book he broke the functions down into five categories: planning, organizing, commanding, coordinating, and controlling. Planning consisted of predicting future conditions, setting objectives, and working out a way to obtain the goals of the company. Organizing consisted of constructing the activities of the company, which included the recruiting, evaluation, and training of personnel. Commanding consisted of the personal supervision of subordinates. Fayol pointed out that it was important to know the people working for the company. Coordinating consisted of harmonizing all of the functions of the company while controlling consisted of overseeing the events of the plan to see that they fell within the parameters of the objective. This would allow the manager to adjust plans if the plans didn’t meet the parameters of the objective (Barnett, 2010). It wasn’t until 1949 that Fayol’s work became know in the United States. This lead to the publications of pioneer managers such as George Terry, Harold Koontz, Cyril O’Donnell, and Ralph Davis in the 1950s, which didn’t see the coordination function as an important part of the functions of management. These writer defined management as a process consisting of a set interdependent functions with the most commonly cited functions being planning, organizing, leading, and controlling (Barnett, 2010). Planning is the function in which objectives are set and the course of action is determined. It involves examining the current situations, predicted the future, determining the intent, deciding what activities the company will employ, choosing the correct strategies, and determining the resources needed to achieve the goals of the company (Bateman & Snell, 2009). Managers must also be good decision-makers. The planning function consists of several steps. The planners must be aware of unforeseen events. They must take in to consideration their customers, their competitors and any economic conditions facing the world at the time. Objectives must be established stating what needs to be accomplished and when, with alternative in place should an unforeseen event occur. The planners must then assemble steps to in ensure the execution of the plan to achieve the goals of the company. Last, the planners must assess the success of their plans and take actions to correct their plans should anything seem out of line (Barnett, 2010). There are different forms of planning, strategic, tactical, and operational. Strategic planning involves studying the competition. It also involves studying the strengths and weaknesses of the company and determining ways to compete effectively. Strategic planning normally involves the entire company and often takes three years or more to complete. This type of planning is normally cared out by top management. Tactical planning normally takes one to three years to complete and is done by middle managers. Planning is designed to develop details to implement the strategic plan. Operational planning is short-range, normally one week to one year. It supports the strategic and tactical plans by developing specific action steps (Barnett, 2010). Organizing is the function that involves building the organizational structure of the company. Organizing is the framework of the company in which all efforts are coordinated. In this process an organization chart is developed, which shows the chain of command within the company. This is the time when individual jobs and responsibilities are determined. This is also the time to departmentalize the functions of the company. This may be based on function, product, geography, or customer. Over the years the departmentalizing these functions have changed and many designs are based on job enrichment and teamwork (Barnett, 2010). Leading is the function that involves influencing others in the company to achieve the goals set by the company. The most effective way to accomplish this is to learn the personalities of their subordinates’, their values, attitudes, and emotions. By learning the personalities of their subordinates, they can communicate effectively and use their power more effectively. Controlling is the last function of management. It involves three steps, establishing performance standards, comparing performance against standards, and taking corrective action when necessary (Barnett, 2010). Performance terms can be stated in a number of terms, such as revenue, costs, or profits or in terms such as units produced, units of defective products or customer satisfaction. Performance measurements can be based on financial statements, sales reports, production reports, or customer satisfaction. The managerial function of control is to take action with subordinates to ensure that the goals of the company are meant and are up to the standards laid-out by the company. Managers have faced many changes through the years, with the advancement of technology and many changes in the environment. However, they still maintain the basic functions, which are planning, organizing, leading, and controlling the company in which they are employed. References Barnett, T. (2010). Reference for business. ENCYCLOPEDIA OF BUSINESS, 2nd ed. Retrieved from http://www.referenceforbusiness.com/management/Log-Mar/Management-Functions.html Bateman, T. S., & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive World, Eighth Edition. 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