Every business entity or organization, whether big or small, needs to develop and implement the basic FOUR MANAGEMENT FUNCTIONS. The success of any business organization depends on how the four functions of management are implemented. These management functions allow an organization to handle its business strategy, tactical and operational decisions. The aim of the paper is to discuss the four functions of management namely; PLANNING, ORGANIZING, DIRECTING or LEADING and CONTROLLING.
This is the first management function and it is a very important area of all the four functions of management. This is the core foundation of management from which other management functions are derived and built. Planning requires the management of an organization to do thorough evaluation of the current state of the company and where the company will be in future. It involves setting goals and objectives to be achieved by an organization within a specified duration. During the planning process, management evaluation both internal and external factors that affect the company. It is a function of systematically making decisions about the activities of an individual, a group, or work unit or the overall organization will pursue in the future.
Planning is also part of management concerned with creating procedures, rules and guidelines for achieving a stated objective. It is carried out at both the macro 2
and micro level. Managers need to create broad objective and mission statements as well as look after the day to day running of the company. Steps in Planning Function
Planning function of management involves following steps:-
1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to be achieved. c. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. d. Moreover objectives focus the attention of managers on the end results to be achieved. e. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. f. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager. g. Such goals should be specified in qualitative terms.
h. Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
a. Planning premises are the assumptions about the lively shape of events in future. b. They serve as a basis of planning.
c. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. d. It is to find out what obstacles are there in the way of business during the course of operations. e. Establishment of planning premises is concerned to take such steps that avoid these obstacles to a great extent. f. Planning premises may be internal or external. Internal includes capital investment policy, management labor relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes. g. Internal premises are controllable whereas external are non- controllable.
3. Choice of alternative course of action
a. When forecast are available and premises are established, a number of alternative course of actions have to be considered. b. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. c. The merits, demerits as well as the consequences of each alternative must be...
References: Bateman, T.S.,& Snell, S. (2009). Management: Leading & controlling in a competitive world
(8th ed.) New York: McGraw- Hill. Retrieved July 21, 2010 from http:www.universityof phoenix edustudnetweb/html/portal
Business Dictinary.com (2010). Definition of Management. Retrieved July 18, 2010 from,
Please join StudyMode to read the full document