Management functions

Planning. Planning is the management function that involves setting goals and deciding how best to achieve them. This function also includes considering what must be done to encourage necessary levels of change and innovation.

Organizing. Organizing is the management function that focuses on allocating and arranging human and nonhuman resources so that plans can be carried out successfully. It is through the organizing function that managers determine which tasks are to be done, how tasks can best be combined into specific jobs, and how jobs can be grouped into various units that make up the structure of the organization. Staffing jobs with individuals who can successfully carry out plans is also part of the organizing function.

Leading. Leading is the management function that involves influencing others to engage in the work behaviors necessary to reach organizational goals. Leading includes communicating with others, helping to outline a vision of what can be accomplished, providing direction, and motivating organization members to put forth the substantial effort required.

Controlling. Controlling is the management function that is aimed at regulating organizational activities so that actual performance conforms to expected organizational standards and goals. To do the necessary regulating, managers need to monitor ongoing activities, compare the results with expected standards or progress toward goals, and take corrective action as needed.

The Management Process

Although the four major functions of management form the basis for the managerial process, several additional elements are considered key ingredients of this process as well. The additional elements were identified by management scholars Steven J. Carroll and Dennis J. Gillen on the basis of their review of major studies on managerial work.

Fig. An extended model of the management process

As indicated in the model, the functions of management form the central part of the process. However, the model also shows that work methods and managerial roles, as well as work agendas, feed into the management functions. A manager's working knowledge and key management skills also are important factors that contribute to high performance (achieving goals).

To understand how management can influence in an organization, we need to define the organization.

For most of us, organizations are an important part of our daily lives. By organization, we mean two or more persons engaged in a systematic effort to produce goods or services. We all deal with organizations when we attend classes, deposit money at the bank, buy clothing, and attend a movie. We are also influenced by organizations more indirectly through the products that we use.

It is useful to keep in mind that the management process applies not only to profit-making organizations but also to not-for-profit organizations. A not-for-profit organization (sometimes called a nonprofit organization) is an organization whose main purposes center on issues other than making profits. Common examples of not-for-profit organizations are government organizations (e.g., the federal government), educational institutions (your college or university), cultural institutions (New York's Carnegie Hall), charitable institutions (United Way), and many health-care facilities. Of course, environmental factors (such as the state of the economy and actions by competitors) also have a bearing on ultimate goal achievement.