FUNCTIONS OF MANAGEMENT Functions of management

MANAGERIAL FUNCTIONS 1. 2. 3. 4. 5. 6. 7. Planning Organizing Staffing Directing Controlling Motivating Co-ordinating

ORGANIZATIONAL FUNCTIONS 1. 2. 3. 4. 5. Production Management Marketing Management Financial Management Personnel Management Office Management

SUBSIDIARY FUNCTIONS 1. 2. 3. 4. 5. 6. Decision making Innovation Representation Reporting Budgeting Forecasting

Subsidiary Functions 1. Decision-making Joseph L Massie regards decision making as the first important separate function of management. An important job of a manager is decision making. Everyday he has to decide about doing or not doing a specific work. Decision-making is the process of choosing the best from among alternative courses of action, evaluation of alternatives and choosing the best. 2. Innovation Ernest Dale has given innovation as a separate function of management. According to him, management involves introduction of new systems, procedures, methods, techniques, products and services. 3. Representation Ernest Dale has regarded representation also as a separate function of management. According to him, a manager has to represent his organization to outsiders, financial institutions, government and others. He has to keep good relations with these agencies with a view to attaining the enterprise objectives. 4. Reporting Luther Gullick has suggested reporting as a separate function of management. The process of giving information to the management/shareholders is considered as reporting. The reports are regularly sent to various levels of management for judging the effectiveness of different

responsibility centres. These reports also become a base for taking corrective actions, if necessary. 5. Budgeting Luther Gullick has also given budgeting as a separate function of management. A budget is a future plan represented in a numerical form. Budgeting is preparing various budgeted figures for the enterprise for the future period. Then comparing the actual results with the budgeted and taking corrective action in future so as to achieve the optimum results. 6. Forecasting Lyndall Urwick regards forecasting as a separate function of management. According to him, forecasting is involved to some extent in every business decision. The management has to forecast while preparing plans for the future. According to Henry Fayol, the entire plan is made of a series of separate plans called forecasts. Forecasting provides a logical basis for preparing the plans.