Organizational Behaviour

Management Definition and Functions of Management

Think and Grow Rich

About Management Definition and its Functions of Management

Management is a process which brings the limited human and material resources myths! and motivates people for the achievement of objectives of the organization. Management is not a one-time act but an ongoing series of interrelated activities. The sum of these activities is known as a management process. It consists of a set of interrelated operations or functions necessary to achieve the desired organizational goals.-(Management Definition and Functions of Management)

A process is a systematic way of doing things. It is concerned with the conversion of inputs into outputs. An analysis of the management process will enable us to know the functions which managers perform. Management includes an a wide variety of activities. Management is a process of organized activities. Management is a continuous process. Management aims at achieving an organization’s goals by ensuring effective use of the available resources. Management is the art of securing maximum prosperity With minimum effort.

Definition of Management

Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals. James A.E Stoner

Functions of Management

The various functions of management are as follows :

Planning :

Planning is the most basic or primary function of management. It comes before the other functions because a manager plans before he acts. Flaming involves determining the objectives and selecting a course of action to achieve them. It implies looking ahead and deciding in advance what is to be done, when and where it is to be done, how and by whom it is to be done; Planning is a mental process requiring the use of intellectual faculties, foresight. imagination and sound judgment. It consists of forecasting, decision-making and problem-solving.

  • The process of planning consists of
  • Determination of objectives
  • Forecasting and choice of a course of action.
  • Formulation of policies, programmes, budgets, schedules etc.
  • Laying down of procedures and standards of performance.

Planning may be long-term er short-term. Planning, is a pervasive function and managers at” all’ levels have to prepare plans. Planning is a continuous or on-going process. It is helpful in the effective achievement of goals.

Organizing :

Once the plans are formulated, the next step is organizing. Organizing is the process of establishing harmonious authority-responsibility relationships among the members of the enterprise. It is the function of creating a structure of duties and responsibilities. The network of authority-responsibility relationship is known as organization structure. Such a structure serves as the framework within which people can work together effectively for the accomplishment of common objectives.

Organizing is an important element of management because it is through organizing that a manager brings together the material and human resources required for the achievement of desired goals. A sound organization helps to avoid duplication of work and overlapping of effort. It should be designed to fit into the needs and objectives of a particular enterprise.

The process of organizing consists of the following steps :

  • Determining and defining the activities required for the achievement of planned goals.
  • Grouping the activities into logical and convenient units.
  • Assigning the duties and activities to specific positions and people.
  • Delegating authority to these positions and people.
  • Defining and fixing responsibility for performance.
  • Establishing horizontal and vertical authority-responsibility relationships throughout the organization.


Staff’mg is the process of filling all positions in the organization with adequate and qualified personnel. The managerial function of staffing providing the organizational structure through the proper and effective selection, appraisal and development of personnel (workers) to fill the roles designed into the structure. Staffing consists of manpower planning, recruitment, selection. training. compensation, integration, and maintenance of employees.

Staffing function has become important with the growing size of an organization, technological advancement, and recognition of the human factor in the industry.

Directing :

Directing is the managerial function of guiding, supervising, motivating and leading people towards the attainment of planned targets of performance. In the process’of directing his subordinates, a manager takes active steps to ensure that the employees accomplish their tasks according to the established plans.

Directing is the executive function of management because it is concerned with the execution of plans and policies. Direction initiates organized action and sets the whole organizational machinery into action.

A directing function of management includes the following activities :

  • Issuing orders and instructions
  • Supervising people at work.
  • Motivating or creating a willingness to work for certain objectives.
  • Communicating the employees regarding the plans and their implementation.
  • Leadership or influencing the behavior of employees.

Coordinating :

To coordinate is to unify the actions of a group of people for some common purpose. Along with specialization, there must be a deliberate effort to coordinate the work which otherwise was divided. Every managerial function represents an exercise in coordination. Planning, organizing, staffing, direction, and control should help the managers in coordinating various activities of the organization. Individuals often interpret similar interests in different ways and their efforts towards mutual goals do not automatically match with the efforts of others.

Controlling :

Controlling is the process of ensuring that the organization is moving in the desired direction and that progress is being made towards the achievement of goals.

The process of controlling involves the following steps:

  • Establishing standards for measuring work performance.
  • Measurement of actual performance and comparing it with the standards.
  • Finding variances between the two and the reasons for that.
  • Taking corrective actions for correcting deviations so as to ensure the attainment of objectives.

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