Process of Management

Everything you need to know about the process of management. The process is defined as a series of actions or operations conducted to an end.

Management as a process emphasize that all managers, regardless of their particulars aptitudes or skills, engage in certain interrelated activities in order to achieve their desired goals.

Management process can be divided into a set of inter-related functions. Managers have to perform certain functions in the organizations to get the things done by others. Managers have to perform these functions by variety of ways.

Some of the elements of the process of management are:- 1. Planning 2. Organising 3. Co-Ordination 4. Motivation 5. Control.

Additionally, learn about the functions of manager and the functions of management.

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Management Process: Planning, Organising, Co-Ordination, Staffing, Directing, Motivation and Controlling

Process of Management – 5 Elements of the Management Process: Planning, Organising, Co-Ordination, Motivation and Control

Management is exercised by planning, finalizing the strategies, making policies, taking managerial decisions for different situations and options, so as to achieve the objectives of the organisation. Management action is taken to utilize the resources of men, machines, money and materials pertaining to the organisation, effectively, economically and efficiently.

Main elements of the management process are:

1. Planning

2. Organising

3. Co-Ordination

4. Motivation and

5. Control

All the activities of an organisation are managed with these management principles. Therefore, success of the business organisations will depend very much on the prudent applications and uses of these fundamentals.

Process # 1. Planning:

Planning is the essence of management. Planning is done with the close considerations of all the ingredients of the business organisations associated with its functioning for the purpose, it has been set up. Therefore, planning is required for each function including formulation of various policies to regulate all the functions of the organisations associated with the main business activity.

‘Business objectives and evolution of management’, a business organisation deals in any of the activity, such as manufacturing, creating a service and marketing, trading or financial services as a business activity. With the main activity of manufacturing or providing a service, there are other associated activities like sales and marketing, materials procurement, human resource planning and finance etc., which too require proper planning and co-ordination.

This is explained assuming that the business organisation is engaged in the manufacturing activity, wherein production is the main function in the total manufacturing process.

Planning for production requires linkages with the following associated functions:

i. Sales plan for the year

ii. Capacity available

iii. Technology presently in operation

iv. Present yields and techno-economic norms

v. Raw materials including other materials

vi. Maintenance

vii. Power

viii. Manpower

ix. Projects for additions, modifications, replacements and modernization

x. Funds for working capital and projects

xi. Logistics for dispatches of finished products.

Thus, planning for production and all the associated functions is done keeping into consideration the corporate objective, vision, mission, corporate plan and policies of the organisation.

Similar to the planning for production, other activities too are interfaced. For example, planning for materials requires linkages with the production plan, stocks already available, pending orders position, lead time from order to receipts, procurement policy for materials etc.

Planning for sales requires assessment of internal and external variables. Internal variables for sales planning are, production capacity, quality of products being manufactured with the present technology available.

External variables are, demand of products in the home as well as export markets, production by other manufacturers and present market share of the organisation.

Similarly, for funds requirement, planning depends on the sales plan, production plan, funds required for working capital and projects under implementation, payment of interest on loans, repayment of loans, payments to suppliers and contractors, receipts from the customers against sales and services provided on credit, financing policy for the projects, dividend payments, internal generation of resources etc.

Planning is described as advanced and prudent action for the future activities fay the organisation to achieve its objectives.

Planning is done based on the corporate objective, vision, mission and policies for; manpower, sales, procurement of materials, financing, payment and realizations from customers (credit policy), capital structure etc. It requires interfacing with all the associate functions and resources of the organisation based on the strategic actions combined with managerial decisions.

Thus, outcome of planning is; fixing of targets for all the functions and activities associated with the performance of the organisation to achieve its objectives. These targets become the management tools to measure the actual performance of the individual activities and take corrective action in the event of shortfalls and unfavourable variations.

Process # 2. Organising:

Organising is the management function associated with the arrangement and effective utilization of resources of men, money, materials and machines for achieving the objectives of the organisation.

In organising function, there are two activities:

i. Arrangement of resources

ii. Effective utilization

Organising is associated with the total functioning of the organisation for its proper and effective performance and involves formal and informal organising functions.

‘Formal organising’ is the distribution of the resources into various segments (zones, divisions, departments and sections) and placing them under the charge of empowered personnel.

‘Informal organising’ is the management function associated with the behavioral perceptions, attitudes and motivation of the employees, executives and non-executives both.

Process # 3. Coordination:

Organisation is divided into various functionary units such as, production, materials management, finance and accounts, sales and marketing, human resource management, information technology and projects etc. These functions are placed under the senior employees designated as the head of the department.

Functions of all the departments are co-ordinated for proper functioning to successfully achieve the main objective of the organisation. This requires a proven and latest system of communication in the organisation to inform each department, zone and section through their respective heads for the departmental plans, actual performance, new guidelines and procedures issued from time to time on the overall functioning of the organisation.

Thus, coordination is an important management function bringing the entire organisation together, making them jointly accountable for their plans and actual performance, success and failures together with the reasons for failures. This is the regular exercise through the in-built system of communication, reports, meetings, workshops, conferences and reviews of performance at various levels of senior authorities in the organisation.

Process # 4. Motivation:

Motivation as a management function is more associated with the human resource management. This includes human resource plan and creation of a quality workforce in the organisation through a good system of recruitment, training and development, placement on the jobs, remuneration, perks, recognitions, rewards and promotions etc.

Scope of motivation includes the individual employee as well as the group of employees (executives and non-executives both).

Thus, a motivated and a quality workforce is a great asset in an organisation in achieving the corporate objective. Workforce is meant to include the employees from shop floor to the top management team in the organisation.

Environment of motivation is created in the organisation more with an holistic approach in the management functions such as:

i. Positive behavioral change.

ii. Trust amongst team members.

iii. Delegations to the senior executives to enhance the accountability in the senior level managers in the management team.

iv. Appreciate and inspire for the good jobs.

v. Develop a powerful and good team.

vi. Take a balanced team of high and low performers in all the working zones and departments.

Process # 5. Control:

Control is the prime function of management to regulate and optimize the overall performance of an organisation.

This involves a series of actions such as:

i. To finalize the performance plans in respect of each department, division and zone in consultation with their heads and the management team for each year.

ii. To finalize the plans based on the corporate objective, corporate plan, vision and mission of the organisation.

iii. To intimate the finalized plans to the heads of all departments/divisions/zones.

iv. To monitor the actual performance as per the finalized plans.

v. To get the regular reports from all the departments/ divisions/zones.

vi. To review the performance and discuss with the concerned heads for the shortfalls and to take necessary action to revive the performance.

Thus, it is seen that management control function requires a good system of compilation of information, reporting and review at various levels of the management team including the chief executive officer (CEO). Periodicity of the reports and review by the respective authorities depends on the practice followed in the organisation.

Communication and Information System:

In the management process, ‘communication and information system’ plays a significant role.

The basic fundamentals of communication and information system are:

(i) To inform the right things

(ii) To inform to the right people

(iii) To inform at the right time

To act as per these fundamentals, supporting segments of the communication and information system need to be efficiently maintained and managed.

Important segments of communication and information system are:

I. Sources of information-

a. Within the organisation

b. Outside the organisation

II. Collection of information is done manually or through an online computerized system.

III. Analysis of information.

IV. To maintain the information through a permanent data bank system centrally in the computer department or in the respective departments/divisions/zones.

V. To update the information regularly.

VI. To communicate the information throughout the organisation to all the concerned departments/divisions/zones and also the respective heads.

VII. Form and format of the information. Information may be communicated in a report or statement or in pamphlets and on notice boards for mass communication.

VIII. Time and periodicity of the information to be communicated.

IX. Recipients of the information i.e., the departmental heads or the chief executive officer or the common employees for the general information.

X. Review through meetings.

XI. Corrective action for deviations from the approved plans.

Employees and departments of the organisation associated with the collection, analysis, preparation of reports and communication should be well educated and experienced, having analytical skills of collection, presentation etc.

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Process of Management – With 5 Steps of Management Process

There is plenty of disagreement among management thinkers on the classification of managerial functional process. Newman and Summer recognize only four steps in management process, namely, organizing, planning, leading and controlling. Henry Fayol identifies five functions of management, viz., planning, organizing, commanding, coordinating and controlling. Luther Gulick states seven such steps in management process under the catch word “POSDCORB’ which stands for planning, organizing, staffing, directing, coordinating, reporting and budgeting.

Warren Haynes and Joseph Massie classify management process into decision-making, organizing, staffing, planning, controlling, communicating and directing. Koontz and O’Donnell divide the process into planning, organizing, staffing, directing and controlling.

For our purpose, we shall designate the following six as the functions of a manager:

1. Planning,

2. Organizing,

3. Staffing,

4. Directing,

5. Coordinating, and

6. Controlling that constitute the management process.

1. Planning:

Planning is the most elemental and the most all-encompassing step of management process. If people working in groups have to perform effectively, they should know in advance what is to be done, what activities they have to perform in order to do what is to be done, and when it is to be done. Planning is concerned with ‘what’, ‘how’, and ‘when’ of performance. It is deciding in the present about the future objectives and the courses of action for their achievement.

It thus involves:

(a) Determination of long and short-range objectives;

(b) Development of strategies and courses of actions to be followed for the achievement of these objectives; and

(c) Formulation of policies, procedures, and rules, etc., for the implementation of strategies, and plans.

Top management in the context of its basic purpose and mission, environmental factors, business forecasts, and available and potential resources sets the organizational objectives. These objectives are both long-range as well as short-range. They are divided into divisional, departmental, sectional and individual objectives or goals.

This is followed by the development of strategies and courses of action to be followed at various levels of management and in various segments of the organization. Policies, procedures and rules provide the framework of decision-making, and the method and order for the making and implementation of these decisions.

Every manager performs all these planning functions, or contributes to their performance. In some organizations, particularly those, which are traditionally managed, and the small ones, planning are often not done intentionally and scientifically but it is done in modern, bigger and professional organizations.

The plans may be in the minds of their managers rather than explicitly and precisely spelt out- they may be nebulous rather than clear but they are always there. Planning is thus the most basic function of management. All managers at all levels of hierarchy perform it in all kinds of organizations.

2. Organizing:

Organizing involves identification of activities required for the achievement of enterprise objectives and implementation of plans; grouping of activities into jobs; assignment of these jobs and activities to departments and individuals; delegation of responsibility and authority for performance, and provision for vertical and horizontal coordination of activities.

Every manager has to decide what activities have to be undertaken in his department or section for the achievement of the goals entrusted to him. Having identified the activities, he has to group identical or similar activities in order to make jobs, assign these jobs or groups of activities to his subordinates, delegate authority to them so as to enable them to make decisions and initiate action for undertaking these activities, and provide for coordination between himself and his subordinates, and among his subordinates.

Organizing thus involves the following sub-functions:

(a) Identification of activities required for the achievement of objectives and implementation of plans.

(b) Grouping the activities so as to create self-contained jobs.

(c) Assignment of jobs to employees.

(d) Delegation of authority so as to enable them to perform their jobs and to command the resources needed for their performance.

(e) Establishment of a network of coordinating relationships.

Organizing process results in a structure of the organization. It comprises organizational positions, accompanying tasks and responsibilities, and a network of roles and authority- responsibility relationships.

Organizing is thus the basic process of combining and integrating human, physical and financial resources in productive interrelationships for the achievement of enterprise objectives. It aims at combining employees and interrelated tasks in an orderly manner so that organizational work is performed in a coordinated manner, and all efforts and activities pull together in the direction of organizational goals.

3. Staffing:

Staffing is an incessant and fundamental step in management process. After the objectives have been determined, strategies, policies, programmes, procedures and rules formulated for their achievement, activities for the implementation of strategies, policies, programmes, etc., identified and grouped into jobs, the next logical step in the management process is to procure suitable personnel for manning the jobs.

Since the efficiency and effectiveness of an organization significantly depends on the quality of its personnel and since it is one of the primary functions of management to achieve qualified and trained people to fill various positions, staffing has been recognized as a distinct function of management.

It comprises several sub-functions:

(a) Manpower planning involving determination of the number and the kind of personnel required.

(b) Recruitment for attracting adequate number of potential employees to seek jobs in the enterprise.

(c) Selection of the most suitable persons for the jobs under consideration.

(d) Placement, induction and orientation.

(e) Transfers, promotions, termination and layoff.

(f) Training and development of employees.

As the importance of human factor in organizational effectiveness is being increasingly recognized, staffing is gaining acceptance as a distinct function of management. It need hardly any emphasize that no organization can ever be better than its people, and managers must perform the staffing function with as much concern as any other function.

4. Directing:

Directing is the function of leading the employees to perform efficiently, and contribute their optimum to the achievement of organizational objectives. Jobs assigned to subordinates have to be explained and clarified, they have to be provided guidance in job performance and they are to be motivated to contribute their optimum performance with zeal and enthusiasm.

The function of directing thus involves the following sub-functions:

(a) Communication

(b) Motivation

(c) Leadership

5. Coordination:

Coordinating is the step of establishing such relationships among various parts of the organization that they all together pull in the direction of organizational objectives. It is thus the process of tying together all the organizational decisions, operations, activities and efforts so as to achieve unity of action for the accomplishment of organizational objectives.

Mary Parker Follet has aptly highlighted the significance of the coordinating process. The manager, in her view, should ensure that he has an organization “with all its parts coordinated, so moving together in their closely knit and adjusting activities, so linking, interlocking and interrelation, that they make a working unit, which is not a congeries of separate pieces, but what I have called a functional whole or integrative unity”.

Coordination, as a management function, involves the following sub-functions:

(a) Clear definition of authority-responsibility relationships

(b) Unity of direction

(c) Unity of command

(d) Effective communication

(e) Effective leadership

6. Controlling:

Controlling is the step of ensuring that the divisional, departmental, sectional and individual performances are consistent with the predetermined objectives and goals. Deviations from objectives and plans have to be identified and investigated, and correction action taken. Deviations from plans and objectives provide feedback to managers, and all other management processes including planning, organizing, staffing, directing and coordinating are continuously reviewed and modified, where necessary.

Thus, controlling itself involves the following process:

(a) Measurement of performance against predetermined goals.

(b) Identification of deviations from these goals.

(c) Corrective action to rectify deviations.

Functions of Management:

Management practices are as old as human civilization, when people started living together in groups, for every human group requires management and the history of human beings is full of organizational activities. Even a smallest human group in our society, i.e., family also needs management. The head of the family acts as top management and the housewife acts as a home manager. She plans about the work to be done, how the work has to be done, who is to do the work and whether the work is done properly or not.

She performs all the four functions of management, i.e., planning the budget and day-to-day activities, organizing the things and activities of different people, directing the servants and different members of the family and controlling activities of different members of the family. Family is a very informal type of individuals’ cluster. Even if this informal individuals’ cluster is not managed properly it will lead to great fuse and confusion.

During the last five decades, management as a discipline has attracted the attention of academicians and practitioners to a very great extent. The basic reason behind this phenomenon is the growing importance of management in day-to-day life of people. Today, the society has large and complex institutions with many people working together.

The relationship between managers and managed has changed as compared to the older master-servant relationship making it more complex. People have greater expectations from their jobs. In order to make all these things function properly, people have been trying to evolve some method and techniques. Such attempts have given birth to management as a separate discipline. It has grown over the period of time making itself one of the most respected disciplines. Today, the study of management has become an important fact of human life.

Understanding Management as Concept:

The term management can have different meanings, and it is important to understand these different definitions.

The term management can be considered as:

“People who wish to have a career as a manager must study the discipline of management as a means toward practising the process of management”.

1. Management as a Process:

Have you ever said “That is a well-managed company” or “That organization has been mismanaged”? If you have, you seem to imply that- (i) management is some type of work or set of activities and (ii) sometimes the activities are performed quite well and sometimes not so well.

2. Management as a Discipline:

If you say you are a student of management or majoring in management, you are referring to the discipline of management. Classifying management as a discipline implies that it is an accumulated body of knowledge that can be learned. Thus, management as a subject with principles, concepts and theories. A major purpose of studying the discipline of management is to learn and understand the principles, concepts, and theories of management and how to apply them in the process of managing.

3. Management as People:

Whether you say, “That company has an entirely new management team” or “She is the best manager I have ever worked for” you are referring to the people who guide, direct and thus, manage organizations. The word management used in this manner refers to the people, manager who engage in the process of management.

4. Management as a Career:

“Mr. Saxena has held several managerial positions since joining the bank upon his graduation from college”. This statement implies that management is a career. People who devote their working lives to the process of management progress through a sequence of new activities and, often, new challenges. More than ever before, today’s business environment is fast changing and competitive, posing challenges, opportunities, and rewards for individuals pursuing management as a career.

These different meanings of the term management has been related as follows by John M. Ivancevich—

You are referring to management as a process involving set of activities. Since the late nineteenth centuiy, it has been common practice to define management in terms of four specific functions of managers. Planning, organizing, leading and controlling. We can thus say that 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.

All the managers in the organization perform certain functions to get the things done by others. However, what are these functions, which comprise management process, is not quite clear and divergent views have been expressed on this.

Earnest Dale has suggested innovation and representing also as important management functions besides these. Thus, it can be seen that there is no agreement over the various functions of management. These functions have been treated differently over the period of time. Ervin Williams has summarized the various managerial functions developed over the period of time.

All the above functions can be categorized into five fundamental functions of management, i.e.,:

1. Planning

2. Organizing

3. Staffing

4. Directing and

5. Controlling

1. Planning:

The planning function is the primary activity of management. Planning is the process of establishing goals and a suitable course of action for achieving those goals. Planning implies that managers think through their goals and actions in advance and that their actions are based on some method and plan. Plans give the organization its objectives and set up the best procedures for reaching them. The organizing, leading and controlling functions all derived from the planning function.

The first step in the planning is the selection of goals for the organization. Goals are then established for each of the organization’s subunits-its division, department, and so on. Once these are determined, programmes are established for achieving goals in a systematic manner.

The organizational objectives are set by top management in the context of its basic purpose and mission, environmental factors, business forecasts, and available and potential resources. These objectives are both long-range as well as short-range. They are divided into divisional, departmental, sectional and individual objectives or goals.

This is followed by the development of strategies and courses of action to be followed at various levels of management and in various segments of the organization. Policies, procedures and rules provide the framework of decision-making, and the method and order for the making and implementation of these decisions.

2. Organizing:

After managers develop objectives and plans to achieve the objectives, they must design and develop an organization that will be able to accomplish the objectives. Thus, the purpose of the organizing function is to create a structure of task and authority relationships that serves this purpose.

Organizing is the process of arranging and allocating work, authority, and resources among an organization’s members so they can achieve the organization’s goals.

Stoner defines “Organizing as the process of engaging two or more people in working together in a structured way to achieve a specific goal or set of goals.

The organizing function takes the tasks identified during planning and assigns them to individuals and groups within the organization so that objectives set by planning can be achieved. Organizing, then, can be thought of turning plans into actions. Organizing function can be viewed as a bridge connecting the conceptual idea developed in creating and planning to the specific means for accomplishing these ideas.

The organizing function also provides on organizational structure that enables the organization to function effectively. Managers must match an organization’s structure to its goals and resources, a process called organizational design.

3. Staffing:

Staffing is a continuous and vital function of management. After the objectives have been determined, strategies, policies, programmes, procedures and rules formulated for their achievement, activities for the implementation of strategies, policies, programmes, etc., identified and grouped into jobs, the next logical step in the management process is to procure suitable personnel for manning the jobs.

Since the efficiency and effectiveness of an organization significantly depends on the quality of its personnel and since it is one of the primary functions of management to achieve qualified and trained people to fill various positions, staffing has been recognized as a distinct function of management.

As the importance of human factor in organizational effectiveness is being increasingly recognized, staffing is gaining acceptance as a distinct function of management. It need hardly any emphasize that no organization can ever be better than its people, and managers must perform the staffing function with as much concern as any other function.

4. Directing:

Directing is the function of leading the employees to perform efficiently, and contribute their optimum to the achievement of organizational objectives. Jobs assigned to subordinates have to be explained and clarified, they have to be provided guidance in job performance and they are to be motivated to contribute their optimum performance with zeal and enthusiasm.

Once objectives have been developed and the organizational structure has been designed and staffed, the next step is to begin to move the organization toward the objectives. The directing function serves this purpose. It involves directing, influencing and motivating employees to perform essential tasks.

The best human resources employed will be of house if they are not motivated and directed in the right direction to achieve the organizational goals. Managers lead is an attempt to persuade others to join them in pursuit of the future that emerges from the planning, and organizing steps. By establishing the proper atmosphere, managers help their employees to do their best.

Effective leadership is a highly prized ability in organizations and is a skill that some managers have difficulty in developing. The ability requires both task-oriented capabilities and the ability to communicate, understand and motivate people.

5. Controlling:

Finally, the manager must be sure that actions of the organizations members do in fact move the organization towards its stated goals. This is the controlling function of management. The controlling is the process of ensuring that actual activities confirm to plan activities.

Controlling implies that objectives, goals and standards of performance exist and are known to employees and their superiors. It also implies a flexible and dynamic organization which will permit changes in objectives, plans, programmes, strategies, policies, organizational design, staffing policies and practices, leadership style, communication system, etc., for it is not uncommon that employees failure to achieve predetermined standards is due to defects or shortcomings in any one or more of the above dimensions of management.

It may be pointed out that although management functions have been discussed in a particular sequence-planning, organizing, staffing, directing, coordinating and controlling – they are not performed in a sequential order.

Management is an integral process and it is difficult to put its functions neatly in separate boxes. Management functions tend to coalesce, and it sometimes becomes difficult to separate one from the other. For example- when a production manager is discussing work problems with one of his subordinates, it is difficult to say whether he is guiding, developing or communicating, or doing all these things simultaneously. Moreover, managers often perform more than one function simultaneously.

Through the controlling function, managers keep the organization on track. Without the controlling functions, other functions lose their relevance. If all the activities are properly planned, organized and directed but there is no control on the activities, then there are full chances that the organization does not achieve its planned goals.

Controlling function helps us knowing the deviations but the reasons for such deviations and the corrective actions is to be taken depends on the managers. Hence, the personal ability of the managers makes the controlling function effective or ineffective.

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Process of Management – Management Process Functions

Every business enterprise has certain pre-determined objectives. No business enterprise can achieve its objectives until and unless all the members of the unit make an integrated and planned effort under the directions of a central coordinating agency, which is technically known as MANAGEMENT and the methodology of getting things done is known as management process.

The process in general is defined as a series of actions or operations conducted to an end. The logic of the management and the sequence in which they are performed is designated as Management process.

Generally this includes the main functions of a manager viz.:

1. Decision making, and

2. Implementation of decisions.

Naturally these two are the functions which are included in management process.

These functions are performed by:

1. Planning,

2. Organising,

3. Staffing,

4. Motivating and

5. Controlling.

Management process, aimed at achievement of organisational goal includes these five functions. These functions are to be performed in the sequence they are mentioned. Thus we can say that managers have to walk along the route of management process to reach organisational goals. The desired result, objective or goal is attained by performing certain fundamental management functions.

Process # 1. Planning:

Planning means thinking in advance the future course of action. Planning is intellectual in nature. It is a mental exercise. It is a vision of future and preparing for it. Planning, as decision making, is selecting among many choices. Planning forecasts future problems and involves selection of courses of action to handle them. Foreseeing the problems is one of the essentials of planning. Their severity is anticipated so that preparatory provisions can be made to handle them.

Planning, as decision, answers to the following basic questions:

i. What should be done?

ii. How should it be done?

iii. Who will be responsible for doing it?

iv. Where it should be done?

v. Why is it to be done?

vi. When should it be done?

Planning involves taking decisions of action in advance. Planning emphasizes the fact that if one knows where he is going, he is more likely to get there. Good managers endeavour to draft a plan which will make things happen in the desired way. This is also stressed by the saying. “Good managers make things happen. Things do not just happen to them.”

Best planning is concerned with fixing the objectives, determining the strategies policy and prescribing the procedures as guidelines to future action. It is the most important step in the process of getting results. It enables the management to be a step ahead of each activity, retain initiative to make use of any opportunity and anticipate problems which may actually arise. Thus planning assumes first step in management process.

It means that the plans must be in detail but flexible so that bear the capability of being re-adjusted in case there is a change in working condition or in objectives of the organisation.

Process # 2. Organising:

Once plan is prepared and methodology to achieve goal is decided, the jobs are required to be allotted and allocated to a group or groups. Naturally groups are formed. The whole process of forming groups and allocating jobs is organisation.

Thus, after planning the next important step is organising. In order to accomplish the work it is necessary to distribute or allocate the necessary component activities among the members of the group. Generally the component time and cost, will be realised. After assignment of a component activity it is a must to delegate authority, so that the allotted activity can be accomplished. From this authority delegation arises various organisational relationships.

This task of allocation, authority delegating and establishing relationship by the manager is known as organising. Thus organising is basically concerned with grouping the activities required to attain the planned objectives, defining responsibilities of the people in the organisation, delegating appropriate authority to them to discharge their respective responsibilities and establishing structural as well as, working relationship to enable coordination of the individual efforts towards accomplishment of objectives of the enterprise.

The process of organising is a fundamental function of management authority and the key to the managerial job. Delegation of authority is the key to organisation. We cannot speak of manager unless he has authority and we cannot speak of creating an organisation unless authority is delegated.

The organisation structure is, of course, not an end in itself but a tool for accomplishing enterprise objectives. Efficient organisation will contribute to the success of the enterprise and for this reason, application of organisational principles is very important.

Process # 3. Staffing:

Staffing is concerned with ensuring that the right type of personnel is available to undertake and execute the varied activities required to attain the planned objectives of the organisation. Staffing involves filling the positions needed in the organisation structure by appointing competent and qualified persons for the jobs. It, therefore includes activities such as anticipating manpower needs, adoption of an appropriate selection procedure, providing manpower appraisals and development.

This needs manpower planning and manpower management. Much of the work relating to human resource planning and management is delegated to personnel manager. However, top management is ultimately responsible for all activities to staffing.

Process # 4. Motivating:

Motivating means inspiring the personnel with zeal to work and co-operate for the accomplishment of common objectives.

Motivation is the process of creating organisational conditions which will impel employees to strike to attain objectives and development. Motivation is the complex of forces starting and keeping a person at work in an organisation. We may define motivation as a willingness to expend energy to achieve a goal or reward.

It is a force that activates dormant energies and sets in motion the action of the people. It is the function that kindles a burning passion for action among the human beings of an organisation.

Motivation is a powerful tool in the hands of a manager for getting things done. Effective motivation improves the performance of the employees. Employees can be motivated by giving them reward, proper appreciation of work, fair treatment which helps in increasing their enthusiasm and performance too.

There are four types of motivation techniques i.e.:

i. Positive or incentive motivation

ii. Negative or fear motivation

iii. Financial motivation

iv. Non-financial motivation.

If a manager wants to get work done by his employees, he may either hold out a promise of a reward for them for doing work in a better or improved way, or he may constrain them, by installing fear in them or by using force, to do the desired work. In other words, he may utilise a positive or negative or financial or non-financial type of motivation. All these types of motivation are widely used by management.

Process # 5. Controlling:

Controlling means observing whether everything is going on according to plan or not. Controlling is nothing but conciliation of the plan with the actual work, ensuring that the objectives in terms of the plan are fulfilled.

Controlling includes an evaluation to determine whether the planned objectives have been achieved or not. Controlling shows where improvements are required. Adequate control can thus lead to innovation, improvements or modifications in previously determined objectives.

Control is a fundamental management function that ensures work accomplishment according to plans. It is concerned with measuring and evaluating performance so as to secure the best result of managerial efforts. It is an essential feature of scientific successful management.

Controlling is nothing but conciliation of the plan with the actual work and locating the lapses, if any, so as to bring the methodology of work on correct track. For this the manager has to be very alert and find out the reasons for such lapses or deviations. He is also responsible for implementing corrective measures. All these things are ultimately aimed at achievement of business goals.

Management can be looked upon as a process by which mangers formulate, direct and operate organisations with coordinative human effort to attain predetermined objectives. Management is a process concerned with planning executing and controlling the activities of an enterprise. Managerial behaviour must be goal directed which results in a succession of activities and events by which the organisation’s work proceeds.

Management is concerned with evolving workable plans which are then put into action resulting in certain consequences which have to be observed, evaluated and constantly compared with the objectives prescribed in the plan. This cyclical process can be described as the management process.

Thus this process starts from a point i.e. planning and till it reaches the point i.e. goal some certain distance is covered. But this wheel does not stop. It further moves to cover further distance in forms of another activity.

A ladder, to be climbed to reach the goal is management process.

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Process of Management – Planning, Organizing, Directing, Controlling and Coordinating

(1) Planning:

It means thinking about goals and objectives of the organization and deciding how best to accomplish them. It is not day-dreaming, building castles in the air. It is a rational activity, based on SWOT anal­ysis—examination of strengths and weakness of the organization and opportunities and threats posed by its external environment. The idea is how to harness the available resources for achievement of orga­nizational goals.

(2) Organizing:    

It means acquiring and putting in place the human, physical, and financial resources and defining rela­tionships between them—who has authority over what and whom. It establishes positions of authority and responsibility (chief executive officer, production manager, sales manager, finance manager, and so on). It also lays down which superior and subordinate will exercise control over which resources to accomplish the duties assigned to him and to whom he will be accountable.

Again, an organization is not mere vesting of authority and responsibility in a position, it also requires constant monitoring of whether the person holding any position is exercising his authority and performing the duties assigned to him. If found wanting, there is also provision for his replacement by another, more competent person.

(3) Directing:

It means influencing subordinate-behavior to ensure that he performs his task and duty ably and willingly. This will include issuance of instructions and directions, constant supervision of work per­formance, provision of suitable motivation and inspiring leadership.

All this with a view to inculcate in the subordinates a sense of belonging to the organization such that they identify themselves with organization objectives and realize that accomplishment of their personal goals (salary and perks, job security, stability, etc.) can be possible only through accomplishment of organizational goals.

Thus, while ‘planning’ and ‘organizing’ functions represent the abstract aspect of management process, ‘directing’ function personifies its tangible and concrete aspect; it involves working with and through people.

(4) Controlling:

It means ensuring that activities of all superiors and subordinates are focused on accomplishment of organizational goals.

The controlling function has three aspects:

(a) Determination of reasonable and realistic standards of performance for each subordinate and department;

(b) Measurement and comparison of actual performance with prescribed standards; and

(c) Initiation of necessary corrective action where actual performance falls short of the determined standards.

The controlling function enables management to ensure that all superiors and subordinates of the organization ably and willingly perform their duties to enable it to accomplish its goals.

The ‘controlling function’ reflects certain elements of the ‘planning function’; it involves determi­nation of realistic and reasonable standards of performance, and also speaks of corrective action if the actual performance deviates from the standard performance level. Sometimes corrective action may also necessitate modification of the ‘organizing’ and ‘direction’ functions.

(5) Coordinating:

The tasks or activities of an organization are grouped on the basis of their similarity. They are assigned to different individuals and departments based on their capacity and specialization achieved because of performance of the same task or activity again and again. Specialization in performance of any task or activity results in greater productivity and efficiency-level. However, division of duties also requires an effective mechanism to integrate and focus them to achieve overall organizational objectives.

Coordination is the process of integrating or linking-up performance of different tasks and activ­ities to keep them focused on achievement of organizational goals. The need for integration will be in direct proportion to the inter-dependence between individuals and departments performing different tasks and activities.

Where performance by any individual or department wholly depends on the per­formance by others, as in Fig. 2 and 3, there will be need for maximum coordination, as non-performance, under-performance or delayed performance of one individual or group will adversely affect the performance of others.

Management, all said and done, is an Integrated Process:

While discussing the process of management, it is convenient as also necessary to describe each func­tion or operation or ‘process’ separately. But this does not mean that management process is only a series of mutually independent functions. In practice, a manager may, and often does, perform many of these functions simultaneously and as a part of a continuum, and not necessarily in the order in which they are listed and discussed.

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Process of Management – Planning, Organizing, Staffing, Directing and Controlling

The process is defined as a series of actions or operations conducted to an end. Management as a process emphasize that all managers, regardless of their particulars aptitudes or skills, engage in certain interrelated activities in order to achieve their desired goals.

Management process can be divided into a set of inter-related functions. Managers have to perform certain functions in the organizations to get the things done by others. Managers have to perform these functions by variety of ways.

But there is no unanimity among them about the nomenclature of the functions of management. Henry Fayol for the first time, classified managerial functions as planning, organizing, commanding, coordinating and controlling. Appley included planning, executing and controlling in management function.

Luther Gulick and Urwick described it as PODSCORB. PODSCORB denoted the following function – (i) Planning, (ii) Organizing, (iii) Directing, (iv) Staffing, (vi) Coordinating, (vi) Reporting, and (vi) Budgeting. E.F.L, Brech emphasized on planning motivating, coordinating and controlling; while Koontz and O’Donnell take planning, organizing, staffing, directing and controlling.

Ernest Dale emphasized on innovation and representation. Joseph Massie prescribed a list of seven functions of management. In practice, it is not always possible to place all managerial activities neatly into these categories since the functions tend to coalesce. Thus, G.R. Terry described managerial functions under four heads.

The list of managerial functions varies from three to eight. There have been no new ideas, research findings, or techniques that cannot readily be placed in the classifications of planning, organizing, staffing, leading and controlling.

Let’s briefly define what each of these management functions encompasses:

(i) Planning:

Planning involves selecting mission and objectives and the actions to achieve them; it requires decision-making that is, choosing further course of action from various alternatives. It is the determination of a course of action to achieve the desired results.

Planning is a pervasive, continuous and never ending activity. It leads to move effective and faster achievements in any organization and enhances the ability of the organization to adapt to further eventualities.

The planning involves selection of – (a) objectives; (b) policies; (c) procedures; and (d) programmes. This also involves taking the decision about choosing the best one out of several alternatives available to the management. Planning involves the determination of future course of action, that is, why in action, what is to be done how to be done and when to be done. The answers to all such questions constitute planning functions.

The planning function involves the following steps:

(a) Determination of the objectives,

(b) Searching of alternative courses of action,

(c) Evaluation of alternatives,

(d) Formulation of a plan, policies and procedures,

(e) Preparation of concrete formation of plan on the basis of schedules programmes and budgets.

(ii) Organizing:

Organizing is the part of management that involves establishing an internal structure of roles for the people to fill in an organization. Organizing is considered as a process of integrating, balancing, unifying and coordinating activities of the employees for the accomplishment of pre-determined activities? Organization helps in establishing relationships among the members of the enterprise.

The relationship is created in terms of authority and responsibility. According to Louis A. Allen, “Organisation involves identification and grouping among the individual and creating authority and responsibility relationship among them for the accomplishment of organizational objectives.”

Thus organization involves the following steps:

(a) Identification of activities,

(b) Grouping of activities,

(c) Assignment of work,

(d) Delegation of authority to subordinate, and

(e) Establishing relationship through the organization.

Organizational functions contribute to the efficiency of the organization through employing human and other resources of the organization.

(iii) Staffing:

Staffing involves managing the process created by organization process. Staffing involves filling and keeping filled the positions in the organization structure. This is done by identifying workforce requirements; inventorying the people available; and recruiting, selecting, placing, promoting appraising, planning the careers of, compensation, and training or otherwise developing both candidates and current work force so that tasks are accomplished effectively and efficiently.

The manager performs the duty of job analysis, job description, appraisal of efficiency, etc., which come under the staffing function, since every manager is concerned with management of human resource, he must perform the staffing function. In most of the organizations, personnel department is set up to provide the necessary help to managers in performing their staffing functions efficiently.

According to Koontz and O’Donnell, “The managerial function of staffing involves managing the organization structure through proper and effective selection appraisal, and development of personnel to fill the roles designed into the structure.”

Staffing functions involve:

(a) Manpower planning,

(b) Recruitment,

(c) Selection,

(d) Placement,

(e) Promotion,

(f) Performance appraisal, and

(g) Training and Development.

(iv) Directing:

Direction may be defined as a function which is related with instructing, guiding and inspiring human factor in the organization to achieve organizational objectives. It is not only a process of direction, but it includes the process of guiding and inspiring them. ‘Direction consists of the process and techniques utilized in issuing instructions and making certain that operations are created out as originally planned.’

Theo Haimann, direction functions consists of three elements:

(a) Communication,

(b) Leadership and Supervision, and

(c) Motivation.

In the words of Marshall, “Directing involves determining the course, giving orders and instructions and providing dynamic leadership”. Simply direction involves issuing instructions to the subordinates, guiding, motivating and supervising them.

(v) Controlling:

Controlling deals with the measurement and correction of the performance of subordinates against the predetermined standards. Controlling is measuring and correcting organizational performance to ensure events conform to plans.

It involves measuring performance against goals and plans, showing where deviations from standards exist, and helping to correct them. In short, controlling facilitates the accomplishment of plans. Control activities generally relate to the measurement of achievement.

Control process comprises:

(a) Fixing appropriate standard for measuring work performance;

(b) Comparing actual and planned work;

(c) Finding variances between two and reasons for the variance;

(d) Taking corrective actions.

Control keeps a check on other functions for ensuring successful functioning of management. It brings to light all bottlenecks to move performance and operates as a straight pointer to the needs of the situation.

A manager has to perform his functions in the organization, whatever the level of manager or the objective of the organization.

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