1.1.2 Defining management by its functions
The world of management can be a messy place - however even a messy place can be tackled systematically .
Henri Fayol, a French industrialist from the 1900s proposed that managers perform five management functions. They plan, organise, command, coordinate and control . These five functions provide the basis around which popular management textbooks are organised. However, these functions are usually condensed to four, with leading subsuming the command and coordinate functions.
The four functions of management as we noted are:
- planning
- organising
- leading
- controlling.
It is likely that as you read the list you automatically thought of some example or had some preconceptions of what is involved in each function.
Planning. Planning is the process of setting goals and objectives and deciding on or developing the strategies to achieve them. In order to determine your goals and objectives you need to be aware of your external environment (the opportunities and threats) and your internal capabilities (strengths and weaknesses) as relative to your competitor. Planning also includes considering how to encourage and prepare employees for the necessary changes and innovation required to survive and prosper in a competitive environment. We will cover managing strategically in Chapter 5.
Consider this:
Stop for a moment and think about what you consider the most often overlooked planning tool.
Organising. Organising is the process of allocating and arranging human and other resources so that your plans can be carried out successfully. You determine what tasks are to be done and how they can be combined into specific jobs. On a larger scale, jobs are grouped to form the organisational structure .
Another aspect of organising is to ensure that jobs are staffed with individuals who can successfully perform the tasks in order to carry out plans. We will consider this further in Section 3.
Leading. Leading is the process of influencing others to engage in the work behaviours needed to achieve goals. Leadership includes communicating with others, providing direction, vision and motivating and influencing staff. We will cover these areas in several chapters in Section 4.
Controlling. Controlling is the process of evaluating and regulating the organisation's activities so that the actual performance meets with targets. Problems will come up - someone will get sick, a part will not be delivered on time, a key customer will go elsewhere. Controlling has three main steps: monitoring of activities, comparing actual results with targets and then taking the necessary steps to ensure that the organisation is on track. This is where it should become clear that management is a process; that is, you evaluate and control against the targets set in the strategic plans. We will cover this in Section 5.
The process of management. The following reading is a basic textbook introduction to management. Pay particular attention to the point that management is a process . This suggests that management is a series of actions that results in change and development.
In your text
Bartol, K M; Martin, D C; Tein, M H and Matthews, G W (2001), pages 3-9.
Of the many tasks that managers do, there are some generally recognised key features regardless of the industry. Managers formulate plans and implement and evaluate performance. Managers are required to monitor their environment and be aware of external events and the likely impact that those events will have on the organisation and its operations. Managers have to be adaptable and prepared to make changes where appropriate.
Consider this:
If you were to consider an example of management in the maritime industry, you might consider issues such as planning, organisation and managing people and resources on board and improving understanding between shipboard and shore-based managers. Management on board plays a crucial role and both sides must work together as a team to give the customer, the shipper or the charterer quality service. In the final analysis, a ship is a business that needs to be properly managed in order to cover its running costs and make a profit.
There has been much debate regarding whether leadership is a management function or a skill. It could be said that this argument is academic in nature. A manager must possess leadership skills and apply them. We will discuss leadership in detail in Chapter 10.
A manager must be able to not only determine what goes on in the immediate environment but must also be able to take a holistic approach, taking into account all the possible aspects of a problem.
Reading 1.1
Blair, Gerard M (2001). 'What makes a great manager'. Great Manager . URL: http://www.ee.ed.ac.uk/~garard/Management/art9.html (accessed 2001, 3 April). [7 pages]
Key management concept:
Organisations do not implement plans, systems, processes - people do.
Activity 1.1
Think about the managerial activities you undertake. List some of them and classify them according to the functions of management. (If you are not in a management position, try to put yourself in your immediate supervisors position.)
Managerial activities |
Management function |
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