Functions of Management

The functions of management are as follows:


Planning is the most basic or primary function of management. It proceeds other functions because a manager plans before he acts. The process of planning consists of:

  • Determination of objectives.
  • Forecasting and choice of a course of action.
  • Formulation of policies, programmes, budgets, schedules etc. to achieve the objectives.
  • Lying down of procedures and standards of performance.


Once plans are formulated, the next step is that of organizing. Organizing is the process of establishing harmonious authority- responsibility relationships among the members of enterprise. It is the function of creating a structure of duties and responsibilities. The process of organizing consists of:

  • Determining and defining the activities required for the achievement of planned goals
  • Grouping the activities into logical and convenient units.
  • Assigning the duties and activities to specific positions and people.
  • Defining and fixing responsibility for performance.
  • Delegating authorities to these people and positions.


Staffing is the process of filling all positions in the organization with adequate and qualified personnel. According to Koontz o’ Donnell, The managerial function of staffing involves manning the organizational structure through proper and effective selection, appraisal and development of personnel.


Directing is the managerial function of guiding, supervising, motivating and leading people towards the attainment of planned targets of performance. In the process of directing these subordinates, a manager takes active steps to ensure that the employees accomplish their tasks according to the established plans. Directing embraces following activities:

  • Issuing orders and instructions.
  • Supervising people at work for certain objectives i.e. Motivation.
  • Establishing understanding with employees i.e. communication.
  • Influencing the behavior of employees.


Controlling is the process of ensuring that the organization moving in the desired direction and that progress is made towards the achievement of goals. The process of controlling involves:

  • Establishing standards for measuring work performance.
  • Measurement of actual performance and comparing it with the standards.
  • Finding variances between the two and the reasons there of.
  • Taking remedial action to assure attainment of objectives.

All these five steps of management are strongly required for accomplishment of organizational goals. For e.g. in an organization, Planning, Organizing and Controlling are done at higher level of management in order to determine the objectives, assigning duties and responsibilities, establishing standards for measuring work performance in an organization. Similarly at middle level Directing and staffing for lower level is done in order to accomplish goals like manning the organization structure and activities such as leadership, motivation, communication and supervision. All these activities/ steps make the process of management which accomplish the goals such as productivity, growth, goodwill etc. of an organization

Functions of Management

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By Hassham

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