It doesn’t matter whatever type, category, or niche your company is; managers of various organizations perform the same functions like planning, organizing, staffing, leading, and controlling. If you’re going to perform the managerial role, then it is significant to be aware of the fundamentals of management. Today, we’ll discuss the five basic functions of management.
What are the 5 Basic functions of Management? Explained
The five basic functions of management like planning, organization, staffing, leading and controlling collaborate with each other toward the creation, execution, and realization of the company’s goals and objectives. It is the process where one function assembles itself on top of the other function. The management of the company should follow these functions in order to achieve success.
Managers should lay out a plan, allocate resources, transfer responsibilities to the workforce based on the plan, direct others to carry out the plan, analyze the effectiveness of the plan, and make some necessary adjustments relevant to the update and feedback.
Planning comprises a developing course of action plan and a company’s plan to achieve them. In the planning stage, the managers of the company create strategic decisions to give direction to the company. Before taking any action, managers brainstorm various alternate options to meet the goals and objectives of the company.
They conduct a thorough analysis of the company’s existing state of affairs while planning. They keep in mind the mission and vision of the company and the availability of various resources to meet the company’s goals. However, they also analyze both internal and external factors like competitors, customers, and economic growth, and they would impact the company’s planning.
When it comes to meeting the goals and objectives of the company, managers of the company should develop a realistic timeline or deadline relevant to the availability of resources, personnel, and finances. Before implementing the plans or taking any steps, managers have to follow some additional steps like getting approval from the board of directors, executives, and managers.
Some of the main types of planning are as follows;
- Operational Planning. It is the process of employing tactical plans in order to reach the strategic goals and objectives of the company. Operational planning develops a specific timeline for implementing the strategic goals into actions operationally.
- Tactical Planning. It comprises of short terms plans of the company’s goals and objectives and the short-term time duration is one year or less. Usually, the middle management of the company implements tactical plans. It focuses on the specific department and area of the company like personal, marketing, finance, production, and facilities.
- Strategic Planning. The top management of the company implements strategic plans and sets goals for the whole organization. It analyzes the company’s strengths and weaknesses, and potential threats to the company. However, it would help the managers of the company to compete in the market.
The aim of organizing is the allocation of resources and transferring the task among employees toward meeting the goals and objectives of the company. Managers should work with various departments of the company like HR, finance, and marketing to manage staffing and budgeting. Usually, managers analyze the aptitude and motivation level of employees and assign them roles and tasks relevant to their capabilities.
While assigning employees various roles and tasks, managers should ensure that the employees comprehend their roles and tasks assigned to them. They should also keep in mind that the employees have got a sufficient amount of time to complete their work and tasks. Some of the main examples of organizing are as follows;
If the sale of the company has increased significantly in a specific area, now managers should hire more staff in the area and divide the region into various teams to meet the growing demand of customers.
If a company has a part-time manager and the company is planning to launch a new product in the market. The existing manager only performs his duties and not focusing the campaign for the new product. In such a case, the company should give the product campaign project to an external advertising agency.
Staffing is the process of managing the company’s structure of allocation of the workforce. Recently factors like complicated human behaviors, increasing size of business, and development in technology have amplified the significance of staffing. The aim of staffing is to put the right person on the right job at the right time. Some of the main elements of staffing are as follows;
- Training and development
- Promotion and transfer
- Manpower and employee planning
- Placement, selection, and recruitment
- Performance appraisal
Leading comprises boosting the morale of employees and impacting the behaviors of the company towards achieving its goals and objectives. It focuses on managing people like groups, teams, and employees rather than their tasks and work. Managers should lead their team members and give them orders, and they’re successful at motivating and inspiring employees, encouraging, and connecting with them; so that they could perform better in the job.
Managers have the capability to develop a positive working environment by knowing when employees need praise, positive reinforcement, leadership, and encouragement when they’re working on their tasks. They should change their management and leadership style relevant to their situation. Some of the main elements of leading are as follows;
Controlling comprising of analyzing and planning execution and making adjustments to make sure that the company would achieve its goals and objectives. Some of the tasks managers perform in the controlling phase are meeting deadlines and training and development. They have to analyze the quality of their work and evaluate their performance. The role comprises giving suggestions for improvements, offering positive remarks, employee feedback, and conducting a performance appraisal. Some of the main elements of control are as follows;
- Developing performance standards
- Measuring and evaluating the performance of employees
- Making a comparison of the performance against the company’s standards
- Taking corrective actions