Function of Management


All the managerial activities from the setting of objectives to taking necessary steps to ensure for achieving organizational objectives are managerial functions/Function of Management. Different management experts classify management functions in different ways.

According to Luther Gullick, the function of management should be studied through the word “POSDCORB” which includes planning, organizing, directing, staffing, coordinating, reporting, and budgeting. From his viewpoint, there are 7 functions of management.

According to Henri Fayol, the management function is classified into five types. They are Planning, Organizing, Commanding, Coordinating, and Controlling. According to him, there are 5 functions of management.

But Koontz and O’ Donnel says that Managerial function is classified into five basic activities/function; Planning, Organizing, Staffing, Directing and Controlling. We can remember these functions through the “POSDC” acronym. According to him, there are 5 functions of management.

From the above, we can know that management functions have different types of classification from the viewpoint of each scholar. We are here going to discuss the Function of Management given by Koontz and O’Donnell because it is most widely accepted. All the functions of management interlink with each other. They are overlapping with each other.

Function of Management


Planning is known as the most important function of management. It affects the overall other function of management. Planning is the process of thinking in advance before doing anything. In other words, deciding in advance what to do, when to do it, who is going to do about the objectives,  policies, procedure, and program of the organization. It provides a roadway to reach the goals of the organization. It also minimizes future uncertainties and risks. Because in the planning steps, we also find out the opportunity and threat face on future with their alternative solutions.

  • It basically concerned with the establishment of goals and selection of effective course of action to achieve this goals
  • It is also concerned with forecasting the business environment and formulate policies, schedule of action accordance to it.
  • Planning is a pervasive function. For the purpose of planning, all the data about the past performance, present performance should collected with the future threat and opportunity. Expert need this all data to make effective plans


Organizing is the process of identification of major activities, grouping them on the basis of nature, and assigned the responsibility and its authority to the employee. It is also concerned with the development of rules, regulations, and procedures for the complementation of work.

  • It also concerned with managing the physical resources need for production
  • Concerned with establishing a well defined organizational structure


Staffing is the process of assigning the task to the right person at the right time and also making provision of proper remuneration and allowance to them. It also involves managing seminars, workshops, training, and other efficient development activities for the employee. It basically includes managerial activities like recruitment, training and development, placement and remuneration, and evaluation of the performance of employees.


Directing is concerned with providing instruction, guidance, and inspiration to the worker so they perform their assigned tasks effectively and efficiently. It also involves some basic elements ie.

  • Supervision

Supervision refers to the direct and immediate guidance, the instruction given to the worker at the spot. The main motive of supervision is to ensure for optimum utilization of human and physical resources.

  • Motivation

The process of developing the feeling among the workers to do their work effectively and efficiently is known as motivation. Employees are motivating through financial and non-financial incentives. Financial incentives involve bonus, increase in salary or other monetary materials. And Non-financial incentives include a good working environment, informal relations, etc. When the employee is motivated, the organization attains their goals effectively.

  • Leadership

A person is said to be a good leader when he is able to influence others and accept his guidance, suggestion, and direction. Similarly, managers also have to play the role of leader to get the best efforts of their subordinates.

  • Communication

Communication is the process of transmission of facts, opinions, ideas, and views from one person to another or from one place to other. In the organization, information should be free flow. There must be two-way communication. So, there is no chance of confusion and misunderstanding. A lower-level employee can also communicate with the top-level management and vice-versa.

  • Coordination

Coordination is the process of proper arrangement of group efforts in unity for the attainment of common goals. Different departments or units are established in the organization that is interrelated with each other. The failure of one department may be the reason for the failure of all departments. So, proper coordination among all departments is necessary.


Controlling is the last function of management. It is the process of measuring actual performance with the planned performance and if there is any deviation between them then take corrective measures. It helps to attain the planned goals.

According to Jerry R. Terry, Controlling is determining what is being accomplished, that is evaluating the performance and if necessary applying corrective measures so that the performance takes place according to plan.

Steps of Controlling:

  • Setting standard
  • Measuring deviation
  • Analyzing deviation
  • Taking Corrective measure

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