Running head: FUNCTIONS OF MANAGEMENT

Functions of Management MGT/330 June 27, 2011

FUNCTIONS OF MANAGEMENT Functions of Management Management by definition is the process of working with people and resources to accomplish organizational goals. A manager is effective when he or she can achieve the organizations goals. To be efficient is to achieve goals with minimal waste of resources, that is, to make the best possible use of money, time, materials, and people (Bateman & Snell, 2009, p. 19). Management consists of four essential functions; planning, organizing, leading, and controlling. Each of these functions has its own unique process and is necessary to the success of managers from top-level management down to and including front-line managers. The planning function involves determining the goals of the organization and deciding on the necessary actions required to achieve those goals. The activities a manager performs in the planning process include; analysis of the current situation, predicting future changes, establishing objectives, making decisions regarding the types of activities in which the company will engage, establishing business and corporate strategies necessary to achieve the goals and objectives, and aligning the necessary resources for achievement of the established goals. Managers must establish the value of each step in the planning process, this value is the monetary amount associated with how well the task, good, or service will meet the users needs. Strategic planning is a type of planning a manager must perform. By definition strategic planning is the process whereby management outlines an organizations direction, philosophy, and purpose (BusinessDictionary.com, 2011). The manager examines the organizations current status in terms of its strengths, weaknesses, opportunities, and threats (SWOT) (BusinessDictionary.com, 2011). The manager sets long-term objectives, and formulates shortterm tactics to reach these objectives (BusinessDictionary.com, 2011). The strengths, weaknesses, opportunities, and threats (SWOT) analysis requires that the manager be honest,

FUNCTIONS OF MANAGEMENT thorough, and self -disciplined while examining the current status of the organization. Formulating strategic plans without a comprehensive SWOT analysis can be futile and risky. Strengths and weaknesses are internal to the organizations environment and can be controlled by management. Strengths are important to accomplishing the objectives should be built upon, and exploited to ensure success. Conversely, weaknesses limit the accomplishment of objectives and goals. These internal characteristics may carry a high level of importance and may need to be addressed before any further strategic planning can continue. Although opportunities and threats may be beyond the direct control of management because they are external to the organization, their influence on planning must be taken into account. Opportunities in the market will provide the organization the possibility of a stronger market presence. Threats may limit the possibility of the organization reaching its objectives and mission because of stronger competition. Organizing is assembling and coordinating the human, financial, physical, information, and other resources needed to achieve goals (Bateman & Snell, 2009, p. 20). Managers will use the organizing function to attract new people to the organization, clearly define positions and the responsibilities of the position, form groups of positions into work units, marshal and allocate resources including physical, financial, and people, and create the necessary conditions to ensure that maximum success is achievable. A manager who lacks the ability to organize details will cause the organization to suffer and possibly fail. Organizing allows the manager to ensure the proper people are doing the appropriate jobs, they are working together as a team, and the goals established in the planning function will be attained. Leading is important to motivating others to perform at their best. A manager who lacks leadership skills may have subordinates with low morale and little or no respect for the manager.

FUNCTIONS OF MANAGEMENT An effective leader can give constructive criticism as well as accept criticism while remaining unbiased and professional regardless of the situation. Leaders empower people to contribute new and innovative ideas as well as refine existing ideas. Leaders provide motivation to their subordinates by communicating with them and explaining the goals and objectives of the organization. The final function of management is controlling. Controlling is the process whereby a manager ensures that the organizations resources are used as planned to meet or exceed the organizational goals. Monitoring is an essential part of controlling. Managers must monitor to ensure that the employees are doing their job and not abusing the organizations resources and the goals of the organization are met. The controlling function, including monitoring of progress, allows the manager to ensure his or her planning is effective and if not permits changes as necessary. New technologies and other innovations make it possible to achieve controls in more effective ways and to help all the people throughout the company, and across company boundaries (including customers and suppliers), to use their brains, learn, make a variety of new contributions, and help the organizations change in ways that forge a successful future (Bateman & Snell, 2009, p. 21). Using these four functions a manager will be able to do his or her job effectively. Failure to follow any of these functions may result in the failure of the manager to reach the goals and objectives of the organization. Many levels of management exist and although differences in the specific goals and objectives for each level are present, using these four functions will ensure success. Managers will deal with interruptions, meetings, and need to react to issues that occur. A manager can be a skilled planner and controller but lack leadership or organizational ability. In this case the

FUNCTIONS OF MANAGEMENT manager will fail to inspire his or her subordinates to perform at high levels, thereby not realizing his or her potential as a manager. I am self employed and do not have any subordinates however, I must use each of these functions to ensure the success of my business. I must plan my daily activities as well as my long term goals. I organize my resources like my reports and informational materials. Even though I do not have subordinates I lead my clients by showing them the benefits of the programs I offer as well as my own enthusiasm for the products. Finally I control my business by tracking my activity using a database. This helps to ensure that I am meeting my goals and objectives on a regular basis.

FUNCTIONS OF MANAGEMENT References Bateman, T., & Snell, S. (2009). Leading & Collaborating in a Competitive World (8th ed.). New York, NY: McGraw Hill/ Irwin. BusinessDictionary.com. (2011). Strategic Business Plan. Retrieved from http://www.businessdictionary.com/definition/strategic-business-plan.html