6 Functions Of Management
The Success of any business depends upon largely on the collective, organized and co-operative efforts of employers and employees. In a business, different people work having different
combination of skills and knowledge that needs to be organized, guided and controlled in order to achieve the common goals for which the business or organization was established. Along with the leadership, the management or manager of the company does this Job for the whole business.
We can say that Management is a decision making process and it covers all aspects of business of life. Whether, it is lower level or middle level or upper level, the proper management
is need to achieve the end goals of the business.
There are 6 Functions of Management focusing on the primary goal of financial management and we discuss them one by one with examples in the below section.
1. Planning 2. Organizing 3. Staffing (HRM) 4. Directing 5. Controlling 6. Coordinating
1. Planning
Planning means creating ideas to do the work in order to achieve the targets within the time frame. People think in order to achieve the goals of the business. It is noted that mere
planning is not enough. You have to take actions on your plans to get the desired results or atleast meet the goals or trying to reach the end goals.
For Example, the plan of the business is “To increase the sales upto 10% during the current year”. It is the plan and to achieve this goals, the actions must be taken
to get the goals in actual way.
2. Organizing
After making planning, now, we need to organize our plans in order to implement it successfully.
As Proper structure of plans is need, so the right person is selected for the right job. As a result, there are chances that business goals will be easily achieved in the time frame set to achieve the end goals.
For Example, if the Business Plan is, “To increase the revenue by 100% during the current year”, then right skillful marketing manager and his / her team need to be established
to achieve end goals.
3. Staffing (Human Resource Management)
Staffing means hiring the right employees to the right job according to their skills, qualification, and talents. It is the process of selection, recruitment, training, rewarding
and evaluation employees’ performance and finally achieve the desired end goals of the business.
For Example, the company needs qualified employees from time to time in order to fill the position in various departments of the business. Job Advertisements are placed for selecting
the right candidates to the right position. After Selection of Successful Candidates, they become the employees of the company. Orientation are given to them. Training session are given to them to check their performance.
Appraisals and Rewards are given to them on excellent performance and experience based from time to time.
4. Directing
Directing means to give directions in the path to accomplish the goals of the business. It is the management who has to give directions to Personnel in order to supervise, guide,
motivate, effective communication and provides leadership to lower level management.
For Example, a manager oversee the situation during working hours. Visit The Staff Office and supervise them, appreciate their performance, boost their confidence level, take address working related problems faced by the staff members during working hours and provide them guidance for improving their working performance.
5. Controlling
A manager must control the working performance of the personnel and take necessary steps to correct the wrong situation. Mere Monitoring is not enough. After Monitoring the working
performance, he / she needs to take correct measures in order to address the issues that lead to the wrong way.
Controlling is the function of management in which evaluation of working performance, plans of the business, effective, necessary actions to control the situation and effective measures
are taken so business will not face such situation or atleast minimize the bad performance of the business.
For Example, a Manager needs to study reports on the financial performance and financial position of the business from time to time so that necessary actions must be taken to meet
the targets of the business.
6. Co-coordinating
Coordinating means that all are united under the business platform. Whether top level management, middle level management or lower level management, they try their best to protect
the interest of the business rightfully and contribute their efforts for the success of the business.
To Implement this organizational culture in the business, top management leads from the front does not exploit the lower level management otherwise, end goals of the business can
not be achieved. Top level management must establish win-win policy and provide justice to the employees of the business.
For Example, many business succeeded due to the combine efforts of top and lower level management. But, many businesses fail due to the lack of combine efforts of all members of
the business. Many business fail Why? Due to Lack of Coordination Between Management And Employees of the business.
So, we can say that, these are the (six) 6 functions of the management that are essential for the success and survival of the business if one wants to continue the business for the
long period of time.
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