Four Functions of Management

The Four Functions of Management

Management is the process of working with other and capital to achieve organizational goals. It is also known as creative problem solving. Defined by Webster’s Online Dictionary as: the process of leading and directing all or part of an organization, often a business one, through the deployment and manipulation of resources: human, financial, material, intellectual or intangible). Webster’s Online Dictionary April 1, 2007.

The creative problem solving is accomplished through the four functions of Management: Planning, organizing, leading and controlling. The intended outcome is using the organizational resources in such a way to achieve its mission and goals.

What a manager does and how it is done can be categorized by the four functions of management, through these functions managers can be catalysts for change or by definition change agents- “people who act as catalysts and manage the change process” robbins, Bergman, Stagg and Coulter, 2000, p438. Whether performing the role of the change agent or not, change is a vital part of a manger’s job. Change is a modification in people, structure or technology. It occurs within and around organizations’ today at a unique speed and complexity. Change poses threats and creates opportunities. The fact that change creates opportunities is reason why managers need to encourage change.

Changing people to help them work together within the organization more effectively involves changing attitudes, expectations, perceptions and behavior. Changing structure relates to job design, job specialization, hierarchy, formalization and all other structural variables of the organization. These changes are ones that need to be flexible and not fixed to be adaptable to change. Technological change entails modification of work process and methods and the introduction of new equipment. Changes in this area have been enormous especially in the areas of computing and communications. Change in general requires the use of the four functions of management effectively.

First the planning function is defined as “the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives” page 134. Planning is a crucial activity that should practiced by management in any organization. The protective purpose of planning is to reduce the worries surrounding the business and to clarify the consequences of related management actions. The affirmative purpose is to increase the degree of organizational success.

Planning helps managers to be future oriented; they are forced to look beyond their everyday problems to face future situations and emphasize on organizational objectives. Planning does not eliminate risk of course, but it helps managers identify problems before they destroy the business. Disadvantages of planning usually results from planning function being used incorrectly.

The organizing function is defined as “establishing the internal organizational structure of the business”. Organizing, bernardl.erven,the five functions of management.

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