A manager’s primary challenge is to solve problems creatively.

While drawing from a

variety of academic disciplines, and to help managers respond to the challenge of creative
problem solving, principles of management have long been categorized into the four major
functions of planning, organizing, leading, and controlling (the P-O-L-C framework). The four
functions, summarized in the P-O-L-C figure, are actually highly integrated when carried out in
the day-to-day realities of running an organization. Therefore, you should not get caught up in
trying to analyze and understand a complete, clear rationale for categorizing skills and practices
that compose the whole of the P-O-L-C framework.

It is important to note that this framework is not without criticism. Specifically, these
criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do
not accurately depict the day-to-day actions of actual managers (Mintzberg, 1973; Lamond,
2004). The typical day in the life of a manager at any level can be fragmented and hectic, with
the constant threat of having priorities dictated by the law of the trivial many and important few
(i.e., the 80/20 rule). However, the general conclusion seems to be that the P-O-L-C functions of
management still provide a very useful way of classifying the activities managers engage in as
they attempt to achieve organizational goals (Lamond, 2004).

Planning

Planning is the function of management that involves setting objectives and determining
a course of action for achieving those objectives. Planning requires that managers be aware of
environmental conditions facing their organization and forecast future conditions. It also requires
that managers be good decision makers.

Planning is a process consisting of several steps. The process begins

with environmental scanning which simply means that planners must be aware of the critical
contingencies facing their organization in terms of economic conditions, their competitors, and
their customers. Planners must then attempt to forecast future conditions. These forecasts form
the basis for planning.

Planners must establish objectives, which are statements of what needs to be achieved
and when. Planners must then identify alternative courses of action for achieving objectives.
After evaluating the various alternatives, planners must make decisions about the best courses
of action for achieving objectives. They must then formulate necessary steps and ensure
effective implementation of plans. Finally, planners must constantly evaluate the success of their
plans and take corrective action when necessary.

There are many different types of plans and planning.

Strategic planning involves analyzing competitive opportunities and threats, as well as

the strengths and weaknesses of the organization, and then determining how to position the
organization to compete effectively in their environment. Strategic planning has a long time
frame, often three years or more. Strategic planning generally includes the entire organization
and includes formulation of objectives. Strategic planning is often based on the organization’s
mission, which is its fundamental reason for existence. An organization’s top management most
often conducts strategic planning.
Tactical planning is intermediate-range (one to three years) planning that is designed to develop
relatively concrete and specific means to implement the strategic plan. Middle-level managers
often engage in tactical planning.
 Operational planning generally assumes the existence of organization-wide or subunit
goals and objectives and specifies ways to achieve them. Operational planning is short-range
(less than a year) planning that is designed to develop specific action steps that support the
strategic and tactical plans.

Planning – A Management Function

In the world of management, planning is a very important function since it is the first of
the basic functions of management which are planning, organizing, directing, coordinating and
controlling. It is often being thought that planning is the most fundamental of the managerial
functions since all other functions stem from the planning function. Planning prepares
organizations for tomorrow by assessing today what an organization wants to accomplish and
how it will go about achieving that goal.

Through planning, management decides the best alternative among others to perform
different managerial functions in order to achieve predetermined goals. Without setting a goal to
be reached and lines of action to be followed, there is nothing to organize, to direct, to
coordinate and to control in the organization. However this should not lead one to hold the view
that planning is an isolated activity required in the beginning only. On the other hand, it is a
continuous and unending process to keep the organization on the path of progress while other
management functions are also performed simultaneously.

Planning is nothing but looking ahead and preparing the organization for the future
course of actions which need to be followed. It is a preparatory step and consists of chalking out
an activity plan for doing the things in an orderly manner for the achievement of the desired
targets and objectives. It is a mental predisposition to think before acting and to act in the light
of facts rather than guesses. It is a detailed programme regarding future course of action. It is a
systematic activity which determines why an action is needed, what is to done, who has to carry
out the action, how it is to be done and when to be done. It bridges the gap between where we
are, and where we want to go. It makes possible things to occur which would not otherwise
occur. The idiom ‘well planned is half done’ amply describes the importance of planning as a
management function.

Planning takes into consideration of available and prospective human and physical resources of
the organization so as to get effective co-ordination, contribution as well as perfect
adjustment. It includes formulation of one or more detailed plans to achieve optimum balance of
needs or demands with the available resources. Through the function of planning policies,
programmes, procedures, budgeting and other related elements gets generated.

There are several steps involved in the process of planning. These steps include (i) choosing of
goals,(ii) identification of actions, (iii) allocation of responsibilities, (iv) reviewing the performance
, and (v) making adjustment in the plan. These steps are shown in Fig 1.

Characteristics of planning

 Planning as the primary function – Planning is the primary function of the management.
It lays the foundation for other functions. It serves as a guide for organizing, directing,
coordinating and controlling. All these other functions of management are performed within
the framework of plans laid out which makes planning as the basic function of management.
 Establishment of objectives – Planning starts with the setting of goals and objectives to
be achieved. These objectives provide nucleus to the planning process and a rationale for
carrying out different activities besides indicating direction of efforts. The objectives focus the
 attention of management on the end results to be achieved. To avoid the undertaken activities
to be ineffective, the objectives are to be stated in a clear, precise and unambiguous
language and in quantitative terms. Only those objectives where quantitative terms are not
feasible are to be specified in qualitative terms. Further the objectives are to be practical,
acceptable, workable and achievable.

 Establishment of assumptions – Assumptions are required for those variables which

needed for during planning and which cannot be identified presently. They determines the
shape of events in future. They serve as the basis of planning. These assumptions in fact are
norms which are to be followed during planning. Accurate assumptions decreases the
probability of deviations from actual plan during the implementation of the plans. Planning
assumptions can be for issues that are either internal or external to the organization.
Assumptions for internal issues are controllable and can be made with higher probability of
accuracy whereas the assumptions on external issues are non- controllable and can only be
imagined.

 Choice regarding the course of actions – Normally for the planning a number of course
of actions are available. It is necessary that each and every alternative course of action is
evaluated by weighing its pros and cons in the light of resources available and requirements
of the organization. The merits, demerits as well as the consequences of each alternative
course of actions is to be examined before the choice is eventually made. The best
alternative is to be chosen only after objective and scientific evaluation of each alternative
course of actions. Help of various quantitative techniques is generally taken to judge the
suitability of an alternative.

 Formulation of derivative plans – Derivative plans are the sub plans or secondary plans
which help in the achievement of main plan. These derivative plans are detailed plans and
flow from the main plan. They are meant to support and expedite the achievement of main
plan. These detail plans include policies, procedures, rules, programmers, budgets,
schedules, sales maximization, production maximization, and cost minimization etc. The
derivative plans also indicate time schedule and sequence of accomplishing various tasks.

 Securing cooperation – After the plans have been made it is necessary as well as
advisable to take subordinates or those who have to implement these plans into confidence.
The purposes behind taking them into confidence include (i) subordinates feel motivated
since they get involved in the process of decision making, (ii) There is possibility of getting
valuable suggestions and improvement in formulation as well as implementation of plans, (iii)
making the subordinates and through them the other employees more interested in the
execution of the plans.

 Follow up or appraisal of the plans – After choosing a particular course of action, the
plan is put into the phase of implementation. During the plan implementation it is essential to
appraise the effectiveness of the plan periodically. In case during appraisal, deviations are
noticed then, it enables the management to take mid-course corrections or in case of
necessity to modify the plan. This characteristic of planning establishes a link between
planning and controlling function. The periodic appraisal of the plans during the
implementation phase also helps in making the future plans more realistic.
 Planning is goal oriented – Plans are made to achieve desired objective of the
organization. The realistic goals need to be established for the achievement of the objectives
otherwise the efforts and energies gets misguided and misdirected. Planning identifies the
actions which are needed for the achievement of the desired goals quickly and economically.
It provides sense of direction to various activities.

 Planning is looking ahead – Planning is done for the future and is based on forecasting.
The plan does the synthesis of forecast and requires glancing in the future, analyzing it and
predicting it. Through the plan, mental predisposition is made for things to happen in future.

 Planning is an intellectual process – Planning is an exercise which involves creative

thinking, foresight, sound judgement and imagination. It is not a mere guesswork but has its
roots in the process of deep thinking. Extensive use of analyzing tools are made for the
making of the plans. Planning is essentially based on goals, facts and considered estimates.

 Planning involves choice and decision making – Planning principally involves choice
among various alternatives. Hence decision making is an integral part of planning. During the
preparation of the plan, management is to pick the best available alternative depending upon
the organizational requirements and the resources which are available.

 Planning is a continuous process – Planning is a never ending function due to the

dynamic environment which normally exist in the organization. Plans are usually made for a
specific period of time and after the end of the period, plans generally need review and
revaluation because there may be new requirements due to the change in the operating
environment. Planning never ceases in the organization since new issues and problems keep
cropping up every now and then and the same are to be tackled by effective and sound
planning.

 Planning is universal – Planning is required at all the levels of the management and in all
the departments of the organization. Planning is needed for the every activity of the
organization. However the scope of planning may differ from activity to other activity and for
different levels of the management in the organization. While the top level of the management
is usually more concerned about planning as a whole in the organization, the middle
management level may be more interested in the specific departmental plans and the lower
level management plans may be regarding implementation of the department plans.

 Planning and efficiency – Plans are normally designed and made with inbuilt efficiency
and hence they lead to accomplishment of the objectives at the minimum possible cost. They
are designed to ensure adequate and optimum utilization of resources and thus avoiding their
wastages. An efficient plan takes into account the cost which is likely to be incurred in its
implementation. An efficient planning leads to saving in time, effort and money. It also leads
to proper utilization of men, money, materials, methods and machines.

 Planning and flexibility- Planning is always done for the future which is unpredictable.
Hence the planning is to provide enough room to cope with the changes which may occur in
the operating environment of the organization such as change in the demand of the
customers, and change in the policies of the government etc. The plans are to be flexible so
that they can be revised and updated if the circumstances calls for it due to the change in the
environment.
 Planning facilitates management by objectives – Planning begins with determination of
objectives. Plans make objectives clearer and specific and highlight the purposes for which
different activities are to be undertaken in the organization. They help in focusing the
attention of the employees on the objectives or goals of the organization. In fact they guide
the organization in its journey towards success. Planning compels the management to
prepare a blue-print of the courses of action to be followed for the accomplishment of the
objectives and hence it brings order and rationality into the organizational operations.

 Planning minimizes uncertainties – Usually an organization operates in an environment

which is full of uncertainties. There are always risks of various types due to these
uncertainties. Planning helps in reducing these risks which are because of the uncertainties
of the future since it is done with the anticipation of future events. Although the future events
cannot be predicted with cent percent accuracy, still the planning helps management with the
cushioning comforts since plans are made after considering anticipated changes which are
likely to occur in future. Plans always help management to minimize the impact of the future
uncertainties.

 Planning facilitates co-ordination – Planning revolves around organizational goals hence

all the activities of the organization gets directed towards the common goals. It helps in an
integrated effort throughout the organization for the achievement of the common goal. It
avoids duplication of the efforts and hence leads to better co-ordination within the
organization.

 Planning has positive impact on the organizational morale – Planning creates an

atmosphere of discipline in the organization. It creates a healthy environment towards work
which helps in boosting the morale and efficiency of the employees. Through plans, the
employees are aware in advance what is expected from them and hence their energy gets
concentrated in achieving the targets. This in turn helps the organization in achieving the
objective.

 Planning and economical operations – Planning helps the organization towards its
economical operations since it leads to orderly allocation of resources for the various
operations. It also facilitates optimum utilization of resources and avoids wastage of
resources by selecting most appropriate use that contributes to the organizational objectives.

 Planning facilitates controlling – Planning facilitates existence of planned goals and

standard performance parameters which provides basis for effective controls. Controls can be
effectively exercised by comparing the actual performance against the planned goals and the
standard performance parameters set in the plans.

 Planning provides the organization an edge over the competitors. Since it involves in the
changing of the work methods, quality, quantity designs, extension of work, redefining of
goals, etc. With the help of forecasting not only the organization secures its future but at the
same time it is also able to estimate the future motives of the competitor which helps in facing
future challenges. Since the planning leads to best utilization of possible resources,
improvement in the quality of production, it helps in improving the competitive strength of the
organization.

 Planning and innovations – In the process of planning, there are a number of innovation
opportunities available to the planners for suggesting ways and means of improving the
organizational performance.
 Planning and decision making – Planning is basically a decision making function since it
provides ample opportunities for the management to take decisions during the plan
preparation. The quality of these decisions influences the results when the plans are
implemented. Well informed decisions and decisions taken through the creative thinking and
imagination ultimately leads to innovation of methods and operations for growth and
prosperity of the organization.

Limitations of planning

There are several limitations of planning. Some of them are inherit in the process of planning
like rigidity etc. while the other arise due to the shortcoming of the techniques of planning and in
the planners themselves. These limitations are due to the causes which can be either internal to
the organization or due to the factors which are external to the organization. For planning
function to be useful and purposeful, management is to be aware of the limitations usually
associated with the planning process. Major limitations are given below.

 Planning has tendency to make administration inflexible since it is a rigid process.

 Planning can be misdirected and biased. There can be attempts to influence setting of
the planning objectives. In such case it may be used to serve individual interests rather than
the interest of the organization.
 Planning is not very effective in an environment which is uncertain and dynamic.
 Planning needs accurate data from internal and external sources. Unreliable data makes
the planning ineffective.
 Planning reduces creativity of the employees.
 Planning involves large costs and is a costly process.
 Planning is time consuming process and it delays the actions. Hence the process is not
suitable for emergencies and crisis situations.
 Planning does not bring success always since due to it the employees can develop an
attitude of false sense of security which can make them careless in their work.
External limitations of planning include change in the political climate, loss of time due to strikes,
lockouts, agitations since this factor cannot be considered in the planning, technological
changes which are affecting the work environment, change in the policies of the competitors,
the natural calamities, and changes in demand and prices etc.
Planning impacts everything which is done in an organization either in a positive or negative
way. It makes supervision more effective and hence makes the work more efficient. Poor
planning and lack of planning brings inefficiencies in the organization. Further both the proper
planning and the poor planning has a multiplier effect on the working environment of the
organization.

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Organizing

Organizing is the function of management that involves developing an organizational

structure and allocating human resources to ensure the accomplishment of objectives. The
structure of the organization is the framework within which effort is coordinated. The structure is
usually represented by an organization chart, which provides a graphic representation of the
chain of command within an organization. Decisions made about the structure of an
organization are generally referred to as organizational design decisions.
Organizing also involves the design of individual jobs within the organization. Decisions must be
made about the duties and responsibilities of individual jobs, as well as the manner in which the
duties should be carried out. Decisions made about the nature of jobs within the organization
are generally called “job design” decisions.

Organizing at the level of the organization involves deciding how best to

departmentalize, or cluster, jobs into departments to coordinate effort effectively. There are
many different ways to departmentalize, including organizing by function, product, geography, or
customer. Many larger organizations use multiple methods of departmentalization.

Organizing at the level of a particular job involves how best to design individual jobs to
most effectively use human resources. Traditionally, job design was based on principles of
division of labor and specialization, which assumed that the more narrow the job content, the
more proficient the individual performing the job could become. However, experience has shown
that it is possible for jobs to become too narrow and specialized. For example, how would you
like to screw lids on jars one day after another, as you might have done many decades ago if
you worked in company that made and sold jellies and jams? When this happens, negative
outcomes result, including decreased job satisfaction and organizational commitment, increased
absenteeism, and turnover.

Recently, many organizations have attempted to strike a balance between the need for
worker specialization and the need for workers to have jobs that entail variety and autonomy.
Many jobs are now designed based on such principles as empowerment, job
enrichment and teamwork. For example, HUI Manufacturing, a custom sheet metal fabricator,
has done away with traditional “departments” to focus on listening and responding to customer
needs. From company-wide meetings to team huddles, HUI employees know and understand
their customers and how HUI might service them best (Huimfg, 2008).

Organizing – A Management Function

Organizing is the function of management which follows planning. It is the process of
establishing orderly uses for all resources within the management system of the organization. It
is a function in which the synchronization and combination of human, physical, financial, and
information resources takes place for the achievement of the results. Organizing function is
essential because it facilitates administration as well as the functioning of the organization.
According to Louis A. Allen, “Organisation is the process of identifying and grouping of the works
to be performed, defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most efficiently”.
According to Chester Barnard, “Organizing is a function by which the concern is able to define
the role positions, the jobs related and the co-ordination between authority and responsibility”.
Organizing is the next important function of management after the planning. In case of planning
the management decides what is to be done in future. In case of organizing, it decides on ways
and means through which it becomes easier to achieve what has been planned. Hence,
organizing refers to the following process.
 Identifying and grouping of the work to be performed.
 Defining and determining responsibility and authority for each job position.
 Establishing relationship among various job positions.
 Determining detailed rules and regulations of working for individuals and groups in
organization.
Organizing creates and maintains rational relationships between human, material, financial, and
information resources by indicating which resources are to be used for the specified activities
and also when, where, and how they are to be used. The organizing function leads to an
organizational structure which defines precisely the authorities and the responsibilities.
Organization structure is the pattern of relationships among various components or parts of the
organization which prescribes the relations among various activities and positions. It defines the
system of relations between elements, factors, and activities within the organization. The
organizational structure is to be designed for some concrete conditions and objective needs of
the organization. The following are the important factors which are to be taken into
consideration in the process of designing of the organizational structure.

 Environment – The environment is relevant for behavior and the organization structure.
The most important characteristics of environment that determine organization structure are
complexity (determined by the number of elements affecting the organization, their variety
and intensity of influence on the operations), stability (measured by the rate of changes in
time, similarity of changes, and possibility of their foresight and comprehension), and
uncertainty (related to availability of relevant information for rational decision-making).

 Technology – It enables transformation of organizational inputs into outputs and it is an

important determinant of the internal efficiency of the organization. Technology includes
technical equipment for manufacturing, knowledge and ability for using the equipment, and
working activity necessary for the transformation process. Considering the relationship
between technical complexity of the organization and its structural characteristics, there are
three groups of the organizations. The first group consists of the organizations which are
having individual or small-lot production. In these organization the technology is universal, the
technological process is subject to frequent changes, and they have a way of production
which is characterized by a low level of centralization, a small number of hierarchy levels,
informal proceedings, and verbal communication, which implies an organic organizational
structure. The second group consists of the organizations with large-lot and mass production.
In these organizations the activities are routine, the technological process is complex and not
easy to change, there is a high level of standardization and specialization, and more
hierarchy levels in the organization structure having a high level of formalization and routine
distribution channels. The third group consists of the organizations with continually-process
production. In these organizations the working process is continual in a certain production
cycle, the operations and procedures are synchronized, the production is highly automated,
technical complexity is at the highest level, centralization is low, communicating is verbal, and
formalization is on a low level. All of these characteristics imply an organic structure of the
organization.

 Strategy – Starting from its internal potentials, chances and threats of environment, the
organization designs its strategy for the realization of the objectives. This strategy requires a
certain organization structure as the frame. The concept of organization structure as a
consequence of the adopted strategy has evolved in the sense that the relationship between
strategy and structure is that of reciprocity, which means that the organization structure also
influences the strategy.
 Size – Connection between the size of the organization (measured by the number of
employees, power of installed capacities, total revenue, value of capital investment, and other
factors) and its organizational structure is very easy to notice. Namely, when the organization
grows up, its organization structure becomes more complex, and vice versa.

 Forms of aggregating – The essence of aggregating in the process of organizational

structuring is a result of the need to control, coordinate, and communicate, which implies
linkages on vertical and horizontal bases. Vertical aggregating is suitable for large
organizations, with a long hierarchical chain, as well as for organizations with stable and
simple environment and routine technology. The aim of vertical aggregating is to enable top
bottom coordination in organization through different levels of management structure, strong
control, and two-way communication. However, an environment which is turbulent and also
the complex technology need horizontal coordination of activities. Vertical aggregating with
formal authority and horizontal aggregating, as its complement, is a way of achieving internal
and external efficiency of an integral totality.

Importance of organizing

Organizing function follows the planning function. Plans prepared under the function of planning
govern all aspects of organizing function. Since the organizing follows planning it is closely
related to it. The organizing begins after the plans are prepared and is governed by the
prepared plans. While the plans state where the organization is to go, organizing helps the
organization how to get there. Organizing function shows the management how the
organization is to be built or how the existing one is modified to ensure that the goals set in the
plans are achieved.

Organizing is essential because it facilitates administration as well as operation of in the

organization. By the proper grouping of the work and the employees, production increases,
overload of work is checked, wastage is reduced, duplication of work is restricted and effective
delegation becomes possible. Organizing also facilitates growth and diversification of activities
through clear division of work. It helps in developing a proper organization structure and the
extent and nature of decentralization can be determined. In addition to the above, it becomes
possible through organizing to provide for the optimum use of technical and human resources.
Besides organizing also encourages creativity and enhances interaction among different levels
of management which leads to unification of efforts of all.

Organizing facilitates development of the organizational structure which becomes a tool for the
management to achieve plans. This organizational structure is to be responsive with the
changes in the plan. The organization which has taken the time, energy, and money to develop
quality plans needs management who understand the importance of organizing.

Process of organizing

Organizing, like planning, is a process which is to be carefully worked out and applied. This
process involves determining what work is needed, assigning those tasks, and arranging them
in a decision-making framework (organizational structure). If this process is not conducted well,
the results may be confusion, frustration, loss of efficiency, and limited effectiveness. The
process of organizing consists of the following five steps. (Fig 1)

 Identification of activities – Each organization exists for fulfilling a specific purpose. This
purpose identifies the activities which are performed by the organization. For example, in a
 manufacturing organization, production of the goods and their selling are the major activities
in addition to the routine activities. And these activities are in variance with the activities of a
service organization or an organization involved in the trading activities. Hence the
identification of the various activities of the organization is an important step in the organizing
function
.
 Grouping of activities – Once the activities have been identified, then there is a necessity
that they are grouped. The activities are grouped in various ways. The activities which are
similar in nature can be grouped as one and a separate department can be created. For
example, activities related to the purchasing, production, marketing, and accounting and
finance can be grouped respectively under purchase, production, marketing, and finance
departments etc. Further in each department the activities can be further subdivided into
various specific jobs.

 Assignment of responsibilities – Having completed the exercise of identifying, grouping

and classifying of all activities into specific jobs, the individual employees comes into
picture since the employees are to be assign with the responsibilities to take care of activities
related to the specific jobs.

 Granting authority – On the basis of specific responsibilities given to individual

employees, they are to be provided with the necessary authority for the discharge of the
assigned responsibilities in order to ensure their effective performance and in turn the
performance of the organization.

 Establishing relationship – This is a very important part of the organizing function since
each employee in the organization is to know as to whom to report and which are the
employee who are to work with him. This establishes a structure of relationships in the
organization which helps to ensure that the organization has clear relationships. This
structure of relationships also facilitates the delegation.

For carrying out the organizing function usually four approaches are followed for designing the
organization structure of the organization.

 The first approach is the functional approach. It is the most common approach. It groups
activities under the major headings such as production, marketing, finance, and personnel
etc. It is a logical approach. Lines are clearly drawn between departments. But, difficulties
can arise because employees get separated department wise and hence from each other.
Their understanding and concern for the specialty areas outside of their own is not easy to
achieve. It can lead to communication difficulties and lack of cooperation between functional
areas. Also, it does not develop generalists in the management area.

 The second approach is the geographic approach which groups the activities and
responsibilities according to the geographical location. Expanding organizations often locate
plants and sales units or repair facilities in various parts of the country because of favourable
labour and materials costs, tax incentives, easy access to transportation, or the need to be
located near customers to serve them quickly and efficiently. Geographic patterns work best
when different laws, currencies, languages, and traditions exist, and have a direct impact on
the ways in which the organizational activities are to be conducted. The geographic structure
furnishes a training ground to develop general management abilities. A limitation of this
approach is the cost of employees and facilities. When the organization makes the decision
 to expand geographically it automatically incurs cost through duplication of employee’s
positions and additional building sites.

 The third approach is the production line approach. This approach assembles the
activities of creating, producing, and marketing each product into one department. This
approach is normally considered if each product of the organization needs a unique
marketing strategy, production process, distribution system, or capital resources. The major
disadvantage is similar to the geographic approach which is the additional cost through
duplication of the functions within each product line.

 The fourth approach is the customer approach which groups activities and resources in
response to the needs of specific customer groups. If customers have a different set of
demands, needs, and preferences then the following of this approach is appropriate. If the
decision is made to use this approach with only some of the organizational customers then
there will be difficulty in coordinating the customer-based departments with departments
organized in other patterns. Another possibility in this approach is the overspecialization. The
facilities and employees may become so specialized to solve the needs of the customers that
they cannot be used for any other purpose.

Organizing principles

Organizing function is effective only if the management follows some guiding principles
in order to make important decisions and act upon them. For an efficient organizing function the
following are the guiding principles.

 Principle of specialization – According to the principle, the entire work of the organization
is to be shared among the subordinates based on their qualifications, abilities and skills.
Hence, effective organization can be achieved through specialization of sharing or dividing
work.

Principle of functional definition – The principle states that all the work in the
organization is to be fully and clearly described to the managers and subordinates. For
instance, the initial work of production, marketing and finance, the authority of managers and
the responsibilities of the workers and their relationships towards each other must be clearly
described to all the employees working in the department. Hence, clarification in the authority
and responsibility helps in the growth of the organization.

 Principles of supervision or span of control – The principle states that the span of control
shows the number of employees that a single manager can handle and control efficiently.
Hence, the management is to decide the number of employees that a manager can handle
and this decision can be chosen from either a wide or narrow span of employees. There are
two types of span of control namely (i) wide span of control in which a manager can easily
supervise and effectively handle a big group of subordinates independently, and (ii) narrow
span of control in which a manager does not have to supervise and control a large group of
employees as the work and authority is shared among many subordinates. Hence, the
manager needs to supervise only a selected number of employees at one time.

 Principle of scalar chain – It is that chain of command or authorization in which there is

minimum wastage of resources, communication is unaffected, overlapping of work is
prevented, and this facilitates effective organization. The flow of authorization from the top
 level to the bottom level enables the managers to understand their positions of authority and
this helps in an effective organization.

 Principle of unity of command – As per this principle, one subordinate is accountable to

only one superior at one time. This helps in preventing lack of communication and feedback
and also brings about quick response. Hence, the principle of unity of command leads to
effectively combine both physical and financial resources which in turn aids in effective
coordination and organization.

Benefits of organizing

The benefits of the organizing function are as follows.

 The end result of the organizing process is an organization which is whole consisting of
unified parts (a system) acting in harmony to execute tasks to achieve goals, both effectively
and efficiently.

 A properly implemented organizing process results in a clarified work environment.

Everyone in the organization knows what to do. The tasks and responsibilities of all
individuals, departments, and major divisions gets clarified. The type and limits of authority
also gets determined.

 There is an environment of coordination and cooperation in the organization. The

interrelationships of the various work units gets developed. The principle of unity of direction
which calls for the establishment of one authority figure for each designated task of the
organization is achieved. This person has the authority to coordinate all plans concerning that
task.

 A formal decision-making structure gets established in the organization. This chain of

command allows the orderly progression up and down the hierarchy for decision making and
decision-making communications.

http://ispatguru.com/organizing-a-management-function/

Leading
 Leading involves the social and informal sources of influence that you use to inspire
action taken by others. If managers are effective leaders, their subordinates will be enthusiastic
about exerting effort to attain organizational objectives.

The behavioral sciences have made many contributions to understanding this function of
management. Personality research and studies of job attitudes provide important information as
to how managers can most effectively lead subordinates. For example, this research tells us
that to become effective at leading, managers must first understand their subordinates’
personalities, values, attitudes, and emotions.

Studies of motivation and motivation theory provide important information about the
ways in which workers can be energized to put forth productive effort. Studies of communication
provide direction as to how managers can effectively and persuasively communicate. Studies of
leadership and leadership style provide information regarding questions, such as, “What makes
a manager a good leader?” and “In what situations are certain leadership styles most
appropriate and effective?”

Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce the subordinates to work with confidence and zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future
visions, and to motivate the organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates it
towards goals.”

Characteristics of Leadership
1. It is a inter-personal process in which a manager is into influencing and guiding workers
towards attainment of goals.
2. It denotes a few qualities to be present in a person which includes intelligence, maturity
and personality.

3. It is a group process. It involves two or more people interacting with each other.

4. A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.

5. Leadership is situation bound. There is no best style of leadership. It all depends upon
tackling with the situations.

Importance of Leadership
Leadership is an important function of management which helps to maximize efficiency and to
achieve organizational goals. The following points justify the importance of leadership in a
concern.
 1. Initiates action- Leader is a person who starts the work by communicating the policies
and plans to the subordinates from where the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the concern’s working. He
motivates the employees with economic and non-economic rewards and thereby gets
the work from the subordinates.

3. Providing guidance- A leader has to not only supervise but also play a guiding role for
the subordinates. Guidance here means instructing the subordinates the way they have
to perform their work effectively and efficiently.

4. Creating confidence- Confidence is an important factor which can be achieved through

expressing the work efforts to the subordinates, explaining them clearly their role and
giving them guidelines to achieve the goals effectively. It is also important to hear the
employees with regards to their complaints and problems.

5. Building morale- Morale denotes willing co-operation of the employees towards their
work and getting them into confidence and winning their trust. A leader can be a morale
booster by achieving full co-operation so that they perform with best of their abilities as
they work to achieve goals.

6. Builds work environment- Management is getting things done from people. An efficient
work environment helps in sound and stable growth. Therefore, human relations should
be kept into mind by a leader. He should have personal contacts with employees and
should listen to their problems and solve them. He should treat employees on
humanitarian terms.

7. Co-ordination- Co-ordination can be achieved through reconciling personal interests

with organizational goals. This synchronization can be achieved through proper and
effective co-ordination which should be primary motive of a leader.

Following are the main roles of a leader in an organization :

1. Required at all levels- Leadership is a function which is important at all levels of

management. In the top level, it is important for getting co-operation in formulation of
plans and policies. In the middle and lower level, it is required for interpretation and
execution of plans and programmes framed by the top management. Leadership can be
exercised through guidance and counseling of the subordinates at the time of execution
of plans.
2. Representative of the organization- A leader, i.e., a manager is said to be the
representative of the enterprise. He has to represent the concern at seminars,
conferences, general meetings, etc. His role is to communicate the rationale of the
enterprise to outside public. He is also representative of the own department which he
leads.

3. Integrates and reconciles the personal goals with organizational goals- A leader
through leadership traits helps in reconciling/ integrating the personal goals of the
employees with the organizational goals. He is trying to co-ordinate the efforts of people
towards a common purpose and thereby achieves objectives. This can be done only if
he can influence and get willing co-operation and urge to accomplish the objectives.

4. He solicits support- A leader is a manager and besides that he is a person who

entertains and invites support and co-operation of subordinates. This he can do by his
 personality, intelligence, maturity and experience which can provide him positive result.
In this regard, a leader has to invite suggestions and if possible implement them into
plans and programmes of enterprise. This way, he can solicit full support of employees
which results in willingness to work and thereby effectiveness in running of a concern.

5. As a friend, philosopher and guide- A leader must possess the three dimensional
traits in him. He can be a friend by sharing the feelings, opinions and desires with the
employees. He can be a philosopher by utilizing his intelligence and experience and
thereby guiding the employees as and when time requires. He can be a guide by
supervising and communicating the employees the plans and policies of top
management and secure their co-operation to achieve the goals of a concern. At times
he can also play the role of a counselor by counseling and a problem-solving approach.
He can listen to the problems of the employees and try to solve them.

A leader has got multidimensional traits in him which makes him appealing and effective in
behavior. The following are the requisites to be present in a good leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and health
are very important for a good leader.
2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he is
forward looking. He has to visualize situations and thereby has to frame logical
programmes.

3. Intelligence- A leader should be intelligent enough to examine problems and difficult

situations. He should be analytical who weighs pros and cons and then summarizes the
situation. Therefore, a positive bent of mind and mature outlook is very important.

4. Communicative skills- A leader must be able to communicate the policies and

procedures clearly, precisely and effectively. This can be helpful in persuasion and
stimulation.

5. Objective- A leader has to be having a fair outlook which is free from bias and which
does not reflects his willingness towards a particular individual. He should develop his
own opinion and should base his judgement on facts and logic.

6. Knowledge of work- A leader should be very precisely knowing the nature of work of
his subordinates because it is then he can win the trust and confidence of his
subordinates.

7. Sense of responsibility- Responsibility and accountability towards an individual’s work

is very important to bring a sense of influence. A leader must have a sense of
responsibility towards organizational goals because only then he can get maximum of
capabilities exploited in a real sense. For this, he has to motivate himself and arouse
and urge to give best of his abilities. Only then he can motivate the subordinates to the
best.

8. Self-confidence and will-power- Confidence in himself is important to earn the

confidence of the subordinates. He should be trustworthy and should handle the
situations with full will power. (You can read more about Self-Confidence at : Self
Confidence - Tips to be Confident and Eliminate Your Apprehensions).
 9. Humanist-This trait to be present in a leader is essential because he deals with human
beings and is in personal contact with them. He has to handle the personal problems of
his subordinates with great care and attention. Therefore, treating the human beings on
humanitarian grounds is essential for building a congenial environment.

10. Empathy- It is an old adage “Stepping into the shoes of others”. This is very important
because fair judgement and objectivity comes only then. A leader should understand the
problems and complaints of employees and should also have a complete view of the
needs and aspirations of the employees. This helps in improving human relations and
personal contacts with the employees.

From the above qualities present in a leader, one can understand the scope of leadership and
it’s importance for scope of business. A leader cannot have all traits at one time. But a few of
them helps in achieving effective results.

Leadership Strategy

Without an effective leadership strategy, it is believed, that the organizational strategies do not
work. Best players in a team do not guarantee success without a great coach, similarly, work
teams may not function effectively if leaders do not follow an appropriate leadership strategy.

To understand leadership styles here are three scenarios:

Scenario 1 - A Teacher gives a question to the class full of students, however, solves it for them;

Scenario 2 - A Teacher gives the question to the students and observes how students solve
them;

Scenario 3 - A Teacher gives a question to the students and moves around the class, observes
the students, and helps wherever required.

Scenario 1 was “Leading from the Front”, Scenario 2 was “Supportive Leadership Style”, and
Scenario 3 was “Interactive Leadership Style”. Besides this the leadership styles / strategies
could be based on personality traits like Directive Leadership, Structured Leadership, Intuitive
Leadership, or Process Driven leadership.

Here are some tips while selecting leadership strategy / style:

A leader must be aware of his / her personality traits and those of his team members /
followers to understand which leadership style will be most effective.

A leader may not adopt a consistent leadership all through his / her career. Situational
Leadership helps addressing varied needs / expectations of the followers as he the leader
adopts a strategy based on a situation he / she is in. In case a leader has a self-reliant team,
he needs to be using a directive leadership style or lead form the front. He could instead
delegate and provide inputs where necessary.

A common mistake especially a lot of new leaders make is to copy established / well know
leaders. Remember, each situation is unique and so are the followers. A leadership style
which may be suited to a well known leader may not be appropriate for your team. Make no
 mistake here - do not try and imitate other leaders.

A leader will never be afraid of trying new approach to solve a work problem or address a
conflicting situation. It is quite a possibility that a leader adopts a style that is not by the
book.

A leader must keep enhancing his / her leadership skills. While on the job experience
matters a lot, getting enrolled into leadership courses after detailed evaluation of the
program and feedback of the participants will help implementing a leadership style more
effectively.

It is often said that good leaders are born and not made; however, good leaders are those who
are aware of their personality traits and also of their followers. They know which leadership style
is to be adopted in a particular situation. Once this is done, there is a little challenge left for a
leader to become a “good / great” leader.

(https://managementstudyguide.com/leadership-articles.htm)

Controlling

Controlling involves ensuring that performance does not deviate from standards.
Controlling consists of three steps, which include (1) establishing performance standards, (2)
comparing actual performance against standards, and (3) taking corrective action when
necessary. Performance standards are often stated in monetary terms such as revenue, costs,
or profits but may also be stated in other terms, such as units produced, number of defective
products, or levels of quality or customer service.

The measurement of performance can be done in several ways, depending on the

performance standards, including financial statements, sales reports, production results,
customer satisfaction, and formal performance appraisals. Managers at all levels engage in the
managerial function of controlling to some degree.

The managerial function of controlling should not be confused with control in the
behavioral or manipulative sense. This function does not imply that managers should attempt to
control or to manipulate the personalities, values, attitudes, or emotions of their subordinates.
Instead, this function of management concerns the manager’s role in taking necessary actions
to ensure that the work-related activities of subordinates are consistent with and contributing
toward the accomplishment of organizational and departmental objectives.

Effective controlling requires the existence of plans, since planning provides the
necessary performance standards or objectives. Controlling also requires a clear understanding
of where responsibility for deviations from standards lies. Two traditional control techniques are
budget and performance audits. An audit involves an examination and verification of records
and supporting documents. A budget audit provides information about where the organization is
with respect to what was planned or budgeted for, whereas a performance audit might try to
determine whether the figures reported are a reflection of actual performance. Although
controlling is often thought of in terms of financial criteria, managers must also control
production and operations processes, procedures for delivery of services, compliance with
company policies, and many other activities within the organization.

Controlling – A Management Function

Management function of controlling is the process whereby organization sets itself

performance objectives and strives to achieve them as best it can over time. It is a method for
managing the performance of the organization. It is the process oriented to verify the
advancement status of the planned objectives as well as the efficacy and efficiency of the
organization through the analysis of the resources, costs and proceeds.

Controlling is one of the important functions of management. It pinpoints the deviations

on the basis of which management can take corrective actions. Without the function of
controlling, work done in the o0rganization is not systematic and as per plans, since the
inefficiencies remain undetected.

For achieving the objectives and targets, it is necessary that the actual performance is
assessed from time to time to ensure that what is being achieved is in conformity with the
objectives and targets. This is done through the controlling function of the management. Thus,
controlling as a function of management refers to the evaluation of actual performance of work
against planned or standard performance and taking the corrective action, if necessary.

Controlling function of the management is not to be seen as an activity of the exclusive

competence of the administration area, but rather as a process which involves, at the
appropriate levels of responsibilities of all the functions of the organization. As with all
processes, the controlling function is constituted by different elements which are connected to
each other. These elements are (i) the structure (personnel charged of the duty of control), (ii)
the tools (general accounting, data analysis, statistical analysis, budgeting, reporting), and (iii)
the procedures (coordination, optimization).

Different management experts have defined the function of controlling in the following
way.
“Control of an undertaking consists of seeing that everything is being carried out in accordance
with the plan which has been adopted, the orders which have been given, and the principles
which have been laid down. Its object is to point out mistakes in order that they may be rectified
and prevented from recurring.” – Henri Fayol.

“Control is checking current performance against predetermined standards contained in

the plans, with a view to ensure adequate progress and satisfactory performance, and also
recording the experience gained from the working of these plans as guide to possible future
needs.” – Brech.

“Controlling is the measurement and correction of performance in order to make sure

that enterprise objectives and the plans devised to attain them are accomplished.” – Harold
Koontz
“Management is the profession of control.” – Stafford Beer.

“Management control can be defined as a systematic effort by business management to

compare performance to predetermined standards, plans, or objectives in order to determine
whether performance is in line with these standards and presumably in order to take any
 remedial action required to see that human and other corporate resources are being used in the
most effective and efficient way possible in achieving corporate objectives.” – Robert J. Mockler
“A process in which a person or group or organization determines or intentionally affects
what another person, group or organization will do.” A.N. Tannenbaum.

“The concept of control may be seen as the minimization of idiosyncratic behavior and
the promotion of conformity in accordance with explicit plans.” – E. McKenna
“Control is a process by which managers ensure that resources are produced and used
effectively and efficiently for achieving the goals of the organization.” – AN Anthony
“Control is a process through which a characteristic of the system is transformed in order to
generate the desired change meant to improve the system”. – Adam Jr. and Ebert
“The concept of control represents permanent or periodic analysis of an activity meant to
provide improvement measures, but also continuous supervision (moral or material);
dominance.” – Dex.

The concept of control implies the following.

 All the principles, criteria, norms and methods concerning the organization inside the
entity, including the mood or the specific strictness
 All internal procedures
 Preventive financial control
 Marketing controls
 Human resources controls
 Other forms of internal controls

The concept of control does not define only actions, mechanisms, procedures, but also a
‘philosophy’ developed within the organization which allows the activity evolution in accordance
with stakeholders’ plans, purposes, and expectations.
Controlling is the management function of establishing performance standards, measuring
actual performance activities to see if the standards have been met, and taking corrective
action. The purpose of controlling is to determine whether people and the various departments
of the organization are on target and are achieving the progress toward the objectives that they
planned to achieve. While planning determines goals and maps out the necessary strategy and
tactics, controlling attempts to prevent failure by providing the means to monitor the
performances of individuals, departments, divisions, and the entire organization. Controlling is
also critical because organization resources are limited. Their acquisition and use are critical to
the survival of the organization. Hence the organization cannot set resources in motion toward a
goal without monitoring the progress of the resources. Hence the organization operates with
monitoring of the performance of employees, the expenditure of funds, or the production of
goods. Controlling affects and is affected by the other four functions of the management.
Controlling is an instrument for planning, accounting, analysis and control of the status of the
operations within an organization. It is used for decision-making on the basis of a system for
data collection and processing, which is a system of constant assessment from different points
of organizational departments, organizational branches, managers and employees. The
processing comprises accounting, analysis and control as an integrated function. It requires (i)
increase of the level of knowledge of the specialists within the organization and activation of
their intuitive and logical awareness, which promotes flexibility of the management system and
attain the objectives of the organization at the same time, (ii) formation of a controlling system
which is to become the basis for the timely improvement of the informational and methodical
support of organizational management and to minimize the probability of an occurrence of
collapses between the needs of the environment and opportunities of the organization to satisfy
 the same, (iii) creation of instruments in the field of prediction of the efficiency of the interaction
of the controlling and the management within the organization, of the choice of the rational
direction of their development and the analysis of the production processes and realization of
the produce of the organization.

The controlling function of the management acts through the following phases in sequence.

 Planning, where for the organizational unit a set of objectives must be defined, that is of
specific expected results, which need to be understandable, agreed, and measurable in
extent and time, reachable, consistent with one another and with the available resources.

 Programming, where a programme is drawn up in order to get the planned objectives,

taking into account the internal and external restraints to the organization.

 Result checking, where it is measured whether the organizational unit has achieved or
not the assigned objectives.

 Shifting analysis, where the possible shifting between objectives and results is analyzed
.
 Corrective action implementation, in order to optimize the behaviour of the unit against
the planned objectives

Thus, controlling involves (i) knowing the nature, quantum and time frame of the work, (ii)
comparing the performance with the plan, (iii) analyzing deviation, if any, (v) taking corrective
steps, and (vi) suggesting revision of plans, if necessary.

The following are the basic characteristics of controlling function.

 Controlling function is a management process

 Controlling is closely linked with planning. Control is said to be checking performance as
per what has been planned. So planning precedes controlling and sets the standards and
targets of performance.
 Controlling is a continuous process. It is an ongoing and dynamic function of
management. It involves a continuous review of performance and is not a one-time exercise.
The period of control normally depends upon the nature of work, the amount of work and the
policies of management.
 Controlling is all pervasive. It is embedded in each level of organizational hierarchy.
Control is exercised at all the levels of management, and is done in every functional area and
at each unit or department.
 Controlling is a tool for achieving organizational activities. It is an action-oriented
process. It points out errors in the execution process. The very purpose of control is defeated
if corrective action is not taken for improvement of performance or the revision of plans.
 Controlling is forward looking. Control is futuristic in nature. It measures current
performance and provides guidelines for the corrective action. This ensures future
performance as per plans.

Due to these characteristics, controlling (i) helps in achieving the targets, (ii) helps in taking
corrective action on time, (iii) helps in monitoring and improving employees performance, (iv)
 helps in achieving better coordination, (v) helps in better planning, (vi) helps in minimizing
errors, (vii) facilitates decision making, and (viii) simplifies supervision.

Types of controls and control systems

There are three types of control. They are (i) feed forward controls, (ii) concurrent controls, and
(iii) feed-back controls. These are described below.

 Feed forward controls are future directed. They are designed to detect and anticipate
deviations from standards at various points. Such preventative controls focus on establishing
conditions that makes it difficult or impossible for deviations from norms to occur. Examples
include safety equipment, safety procedures, job descriptions, job specifications, inductions
and orientation training etc.
 Concurrent controls are sometimes known as ‘in-process’ controls, these controls apply
to processes as they happen. Audible warnings mark this type of control.
 Feedback controls are post-performance controls and they focus upon the end results of
the process. The information obtained is used for corrective purposes. Adjustments and/or
corrections follow the feedback input.
Control systems are the composite feed forward, concurrent, and feed-back controls. Control
system can consist of a combination of any two or more controls. Any combination of these
controls is used to accommodate various management control needs.
Further controls can be grouped according to three general classifications namely (i) the nature
of the information flow designed into the system (open- or closed-loop control), (ii) the kind of
components included in the design (man or machine control systems), (iii) the relationship of
control to the decision process (organizational or operational control). The control process is
generally a three step process of measuring actual performance, comparing it
against a standard, and taking managerial action to correct deviations or inadequate standards.

Requisites of effective controls

The following are the requisites of effective controls.

 Focus on critical points – The critical control points which need focus include all the
areas in the organization which directly affect the success of its key operations. Such points
focus specifically on those areas at which failures cannot be tolerated and where time and
costs are crucial.
 Integration – Controls must not be haphazardly placed. They must function harmoniously
within the established processes of the work. In short, they should not be bottleneck in the
operations. Trust, confidence, and acceptance of all controls must be a part of the culture.
Employees must have faith in these devices.
 Acceptability – As with integration, employees must accept the devices, tools or methods
of control. The necessity, usage, and appropriateness of the controls must blend with the
personnel involved. The acceptability of controls is important for their effectiveness and
efficiency.
 Timeliness – Deadlines, time costs, and punctual needs are apparent in these criteria.
Costs are frequently attributed to time shortcomings or failures.
 Economic feasibility – Economic feasibility of controls is important. The accompanying
expenses to any control or system of controls need to be analyzed and the costs are to be
compared with the benefits.
 Accuracy – The information for the control must be useful and accurate. Reliability and
validity of diagnosed deviations from standards must be accurate. They are to be consistent
and they measure what is intended.
 Comprehensibility – Complexity can cause confusion. Management must favour
simplicity. Control system must be as simple as practicable. Ease of understanding and
application is often associated with simplicity.

Monitoring of controls

Controls are required to be monitored to determine the degree of organizational impact that they
have, both on people and on systems. When controls are developed, employees may resent
them as unnecessary, strict, or demeaning. Employee involvement in the design and
implementation of the control is critical to reduce or eliminate anxiety and resentment. Controls
also need to be monitored to limit the potential impact on organizational patterns and systems
because controls can have side effects.

One potential answer for management is to use program evaluation techniques to monitor the
system. One technique, before-and-after comparison, looks at the environment before and after
the system is installed to note any differences and why they occurred. Other potential options
include time trend data comparisons, comparisons between affected and unaffected parts of the
organization, and controlled experimentation.

In determining the impact of controls on various parts of the organization, questions need to be
asked in the areas of goals, structure, decision-making, and human relations.
Management need to know the impacts of controls. Controls can generate support or
antagonism. Involving employees in the design of controls can help ensure support. Controls
that employees believe are equitable seldom encounter resistance. When ensuring the
effectiveness of controls, management can use these techniques namely (i) conducting before-
and-after comparisons, (ii) surveying the employees affected by the controls, (iii) performing
controlled experiments, and (iv) updating the controls when necessary or as required.
Controls are effective as long as (i) they do what they are intended (prevent deviation, diagnose
deviations, treat deviations, or provide information for future planning), and (ii) they do not
create organizational problems that result in costs greater than the benefits of the control
devices.

Controls are effective only as long as they do what they are intended to do. When the control
devices are designed, they are with a certain set of expectations and under specific
circumstances. If these circumstances and expectations change within the organization, the
control devices need to be reviewed and possibly updated or replaced. The instant changes are
planned or occur in operations, managers should begin to examine how adequate the present
controls will be for these changes. Controls need to be current.
Again, controls need to be monitored for the degree of impact they have on people and
organizational patterns and systems. It should be expected that control systems will affect
employees and organizational operations, but extreme changes should be avoided. If
employees resent control, they will limit the effectiveness of the control. If a control device has
side effects on the organizational patterns and systems, it can impact morale, timeliness of
decisions, and the decision-making environment
Controls can play five important roles in organizations.
These are as follows.
 Control systems enable managers to cope with uncertainty by monitoring the specific
activities and reacting quickly to significant changes in the environment.
 Controls help managers detect undesirable irregularities, such as product defects, cost
overruns, or rising personnel turnover.
 Controls alert managers to possible opportunities by highlighting situations in which
things are going better than expected.
 Controls enable management to handle complex situations by enhancing coordination
within the large organization.
 Controls can decentralize authority by enabling management to encourage decision
making at lower levels in the organization while still remaining in control.
(http://ispatguru.com/controlling-a-management-function/)

Summary

Planning

Planning involves deciding on the course of action of the organization. Once the plan is
finalized, the resources of the business will be used accordingly. Planning for the future of the
organization involves setting aims or targets.

These aims or targets will give the organization a sense of direction or purpose. There
will be a common feeling in the organization of having something to work towards. It is a poor
manager who does not plan for the future at all.Moreover, to these aims, a manager must also
plan for the resources which will be needed.

Organizing

The second function of management is organizing. A manager cannot do everything by

himself. Thus, tasks must be delegated to others in the organization. Organizing involves
coordinating and directing activities to ensure that everyone is aware of what is expected from
them and are working towards the set objectives. It is therefore the manager’s responsibility to
organize people and resources effectively. Hence, an organizational chart is being made to
show who has the authority to do different jobs. Organizational structure refers to the level of
management and division of responsibilities within an organization. This can be illustrated as
follows:

An organization structure shows the relationship between different departments and their
functions. It also shows different levels of hierarchy within the firm and the responsibility of each
staff.

Hierarchy means the different levels of position that exist within an organization. A staff
who is on a higher level on the hierarchy have more power, responsibility, authority and status
but at the same time, its accountability for the responsibilities given to him and vice-
versa.Leading
 Subsequently, the third step of management is leading which is also called as directing.
Through this function, it helps management control and supervises the actions of the staff.
Moreover, it helps the workers by guiding them which is the right direction. Thus, through this
process, the organization will achieve its objectives and in addition, accomplish their personal or
career goals, which can be powered by motivation, communication, department dynamic and
department leadership.

Controlling

Not only planning and organizing are important in an organization; but also controlling
plays an important role in an organization. Other word for controlling is to give order. At this
point, the task of management is more concerned with guiding, leading and supervising people
than just telling them what to do. Managers have to make sure that all supervisors and workers
are keeping to targets and deadlines. Instructions and guidance must be provided by managers
and it is also their responsibility to make sure that the tasks are carried out by people below
them in the organization.

CONCLUSION:

As a result, it can be concluded that management is not easy to define, but the functions of
management helps to demonstrate the varied and important work that good managers should
be doing.

When studying these functions that is planning, organizing, leading and controlling, it should
also be clear why management is necessary to any organization. Without clear and effective
management, a business is going to lack:

A sense of control and direction

Leading to wastage of effort/resources

Control of employees

Organization of resources, leading to low output and sales. Thus, this will lead to a fall in profits.
Therefore, in short, without management in an organization, the firm will drift and eventually fail.