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1. 1UNIT – 1 [FUNCTION OF MANAGERS]
Function of management has been described as a social process involving responsibility for
economical and effective planning & regulation of operation of an enterprise in the
fulfilment of given purposes.
 According to George & Jerry, “There are four fundamental functions of management
i.e. planning, organizing, actuating and controlling”.
 Luther Gullick has given a keyword ’POSDCORB’ where
P for Planning,
O for Organizing,
S for Staffing,
D for Directing,
CO for Co-ordination,
R for reporting &
B for budgeting.
 Functions of management given by Koontz and O’donnel, Planning, Organising,
Staffing, Directing and Controlling. It is most widely accepted classifications.
Functions of management are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others; they are
‘interdependent’ and ‘inter-related’.
An overview of the nature and scope of these functions is given below:

2. 2UNIT – 1 [FUNCTION OF MANAGERS]
1. Planning
According to Koontz, “Planning is deciding in advance - what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be”.
Planning is a mental process requiring the use of intellectual faculties, foresight and
sound judgement. It is the determination of a course of action to achieve the desired
result.
The process of planning involves the following steps:
(i) Determination of goals or objectives of the enterprise.
(ii) Forecasting
(iii) Search of alternative courses of action
(iv) Evaluation of various alternatives and formulation of a plan
(v) Formulation of policies and procedures
(vi) Preparation of schedules programmes and budgets.
2. Organising
According to Henry Fayol, “To organize a business is to provide it with everything
useful or its functioning i.e. raw material, tools, capital and personnel’s”.
In the words of Louis A. Allen, “Organisation involves identification and grouping the
activities to be performed and dividing them among the individuals and creating
authority and responsibility relationships among them for the accomplishment of
organisational objectives”.
Organisation involves the following steps:
(i) Identification of activities required for the achievement of objectives.
(ii) Grouping of activities so as to create well defined jobs.
(iii) Assignment of jobs to employees.
(iv) Delegation of authority to subordinates.
(v) Establishment of authority-responsibility relationships throughout the
organisation.

3. 3UNIT – 1 [FUNCTION OF MANAGERS]
3. Staffing
According to Kootz & O’Donell, “Managerial function of staffing involves manning
the organization structure through proper and effective selection; appraisal &
development of personnel to fill the roles designed in the structure”.
The staffing function of management pertains to recruitment, selection, training,
development and appraisal of personnel.
Staffing comprises the following sub-functions:
(i) Manpower planning involving determination of the number and kinds of
personnel required.
(ii) Recruitment for attracting suitable personnel to seek jobs in the enterprise.
(iii) Selection of the most suitable persons for the jobs under consideration.
(iv) Placement and orientation of employees.
(v) Transfer, promotion of employees.
(vi) Training and development of employees.
(vii) Remuneration and Performance appraisal.
4. Directing / Leading / Actuating
In the words of Marshall, “Directing involves determining the course of action, giving
orders and instructions and providing dynamic leadership”.
Direction involves issuing instructions or communication to the subordinates,
leading, motivating and supervising them.
Direction has following elements:
 Supervision
 Motivation
 Leadership
 Communication
Sub-functions of directing are discussed below:

4. 4UNIT – 1 [FUNCTION OF MANAGERS]
(i) Communication: is the process of passing information and understanding from
one person to another. A manager must develop an effective system of
communication so that he may issue instructions, receive the reactions of the
subordinates and guide and motivate them.
(ii) Leadership: may be defined as the process by which a manager guides and
influences the behaviour of his subordinates.
(iii) Motivation: means inspiring the subordinates with zeal to do work for the
accomplishment of organisation objectives. To some, financial incentives are
important while other are motivated by non-pecuniary incentives like job
security, job enlargement, freedom to work and recognition by peers and
management.
(iv) Supervision: means overseeing the functioning of the subordinates. It is
necessary to ensure that the subordinates are following the instructions given to
them and using raw materials, machines, etc. properly.
5. Controlling
According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”.
According to Koontz & O’Donell, “Controlling is the measurement & correction of
performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”.
In the words of management, controlling deals with the measurement and
correction of the performance of persons against the pre-determined standards.
The process of control involves the following steps:
(i) Establishment of standards: the standard of performance should be laid
down in unambiguous terms and should be understood by everyone in the
establishment.
(ii) Measurement of performance: the actual performance has to be measured
in terms of quantity, quality, cost and time.
(iii) Appraisal performance: the management must provide for comparing the
actual performance with the pre-established standards.
(iv) Taking corrective action: it is to be meant that management should consider
the improvement of plans and standards, even correction of deviation
occurred in standard.
Co-ordination – The Essence of Management
 According to Henry Fayol, “Co-ordination as a function of a manager”

5. 5UNIT – 1 [FUNCTION OF MANAGERS]
 According to Moonley and Railey, “Coordination is the achievement of orderly group
efforts and unity of action in the pursuit of a common purpose”.
 In the words of management, coordination is the orderly synchronisation of the
efforts of the subordinates for the achievement of the goals of the organisation.
It has following features:
(i) It is an orderly arrangement of group efforts.
(ii) Its purpose is to secure unity of action towards common objectives.
(iii) Coordination is needed at all levels of management.
(iv) Coordination is the essence of managing. Each of the functions of
management is an exercise in managing.

6. 5UNIT – 1 [FUNCTION OF MANAGERS]
 According to Moonley and Railey, “Coordination is the achievement of orderly group
efforts and unity of action in the pursuit of a common purpose”.
 In the words of management, coordination is the orderly synchronisation of the
efforts of the subordinates for the achievement of the goals of the organisation.
It has following features:
(i) It is an orderly arrangement of group efforts.
(ii) Its purpose is to secure unity of action towards common objectives.
(iii) Coordination is needed at all levels of management.
(iv) Coordination is the essence of managing. Each of the functions of
management is an exercise in managing.