The Four Functions of Management: Foundation for All Management Concepts

What Is Management?

Management
The process of planning, organizing, leading and controlling Human, Financial, Material and
Information Resources in order to effectively and efficiently achieve organizational goals and objectives
in a changing environment.

Organizational Resources
Human Resource - Most important among the resources of the organization. It includes
employees, laborers, managers, supervisors
Financial Resource - Money, Investments
Material Resource Buildings, Equipment, Machineries, Computers, Vehicles, Tables, etc
Information Resource Company records such as Employees database, customers database,
products database, Company website, etc. (Intangible resources)

Functions of Management
Planning: Formulation of the future courses of action by establishing goals and objectives to
be achieved by the organization. It is the primary function of management.
Organizing: Deciding on the human resources structure of the organization. Ensuring that tasks
have been assigned and the structure of organizational relationships are created to facilitate
meeting organizational goals.
Leading: Serving as role models and adapting management styles as the situation demands.
Relating with others so that their work efforts result in the achievement of organizational goals.
Controlling: Comparing desired results with actual results and taking corrective action as
needed.

Managerial Skills
Conceptual Skills
The ability to think about complex and broad organization issues. Seeing the
organization as a big picture.
Human Skills or Interpersonal Skills
Abilities in getting along with people, good leadership style, helping others to be
motivated, communication and conflict resolution
Technical Skills
Expertise in a particular areamarketing, accounting, finance , human resources, etc.

The Management Levels

Top Management ( Chief Executive Officers (CEOs), President, EVP, SVP, VP, General
Managers
Have organization-wide managerial responsibilities
Middle Management ( Functional Managers, Product-line Managers, Department Heads )
Manage first-line managers
Bottom or Lower Management - ( Unit Managers, First-line Supervisors, Foreman )
Manage the work of employees who are involved in the actual production or creation of
an organizations products or services


















Managerial Roles and Sub-Roles
1. Interpersonal Roles. How manager interacts with other people. With the following sub-roles:
Leader when they initiate and coordinate activities in their organization.
Liaison when managers interact with persons in other units within and outside the organization.
Figurehead when managers represent the organization in the outside world in ceremonial and
civic activities.

2. Decisional Roles. How manager uses information in decision making. With the following sub-roles:
Resource Allocator distributes funds, personnel, materials and other resources for effective and
efficient use in the organization.
Negotiator managers are involved in negotiation activities with suppliers, customers, union,
government, etc.
Entrepreneur identifies new opportunities and the development of these into new products,
services, methods or activities within their organizations.
Crisis Handler He identifies solutions and take action to overcome the day to day problems of
the organization.
3. Informational Roles. How manager exchanges and process information. With the following sub-roles:
Monitor Monitor the flow of information from various parts of the organization, both in the
upper and lower levels
Disseminator - a key role in transmitting and disseminating information to other parts of the
organization.
Spokesperson The managers leadership positions require them to represent and speak to other
units of the organization and outsiders.