Four Functions of Management

Four Functions of Management
Lakari Fleshman
Intro to Business
Unit 4 Individual Project

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Management is an essential part of any business. All functions of business management and
administration are interrelated; one function cannot be performed effectively without ensuring the execution of the other. The four functions that form the foundation of a good organizationinclude planning, organizing, leading, and controlling. All these functions have to be
balanced well by a manager in order to ensure productivity and to attain the goals that have been
charted by the organization.

As the control process is never finished it often leads to identifying new problems. Employees
tend to view the control negatively, controlling more times than not leads to the management
expecting employee behavior to change. Although changes may be positive for the company,
employees may still react negatively. The control process anticipates problems and takes
preventive action. With corrective action the process also follows up on problems. Managers
have three control strategies they may use individually or in a combination of the three: market,
bureaucracy, and clan. External forces make up market control. Without external factors
managers can turn to internal bureaucratic or clan control. Internal bureaucratic control relies on
budgets and rules while clan control relies on employees wanting to satisfy their social needs
through feeling valued as a part of the business. An effective control system has some of the
following characteristics; flexibility, accuracy, timeliness, cost effectiveness, and
understandability. All control systems, no matter how effective, may become dysfunctional with
employee resistance. Such resistance includes game playing, where the employee thinks they
deserve to ???win??? in the game against their boss, following rules to the letter, employees
following unprofitable response to ???do as I say???, and sabotaging, in which the company is
dealing with stealing, discretization of other employees, chasing customers away, and gossiping
about the company. (Erven, 2009)

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A leader is meant to inspire and motivate employees to succeed as integral parts of the
company. Employees will follow a manager because the manager is the boss. Although a
manager that makes it their goal to inspire will have employees following them just for that fact.
Current research explains that for managers to become effective at leading, the managers must
first understand their employee??™s personalities, values, attitude, and emotions. To be a proper
leader one must influence the employees towards the attainment of organizational objectives, a
leader must also communicate effectively and effectively use power. As a manager it is always
important to motivate employees, communication barriers, and conduct performance reviews in a
way that motivates employees. Motivation is the key to the leading function in management. An
employee??™s biggest motivation is self-motivation, seeing as each individual is motivated by
different factors it is important for the managers to match up the companies goals with the goals
of the individual. To effectively communicate, the manager would need to listen more than
speaking to the employees. Communication barriers include unclear messages, stereotyping,
lack of feedback, and inadequate listening skills. As a manager it would be their job to break
down communication barriers in the company. Execute performance reviews by setting
standards for employee performance, making sure both employee and manager understand the
standards that are set. Organizing is the part of management that follows, planning, where the
synchronization and combinations of human, physical, and financial resources. While
organizing, the following steps are required identification of activities, departmentally organizing
the activities, classifying the authority, and combination between authority and responsibility.
First the activity must be identified so the account can be prepared, sales can be made, records
kept, quality control, and inventory control. Departmentation is when the manager combines and
groups similar and related activities into units or departments. As the departments are made the
manager will classify the powers and its extent to the other managers. Top management is into
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formation of policies, middle management is department supervisor, and lower level supervision
of foreman. Each individual is made aware of own authority and when they need to take orders
from. A clear organizational structure is drawn and all employees are made aware of.
{Management Study Guide, 2012} Financial planning and budgeting considerations also fall
under the general theme of the organizing function of management. The Organization generally
helps on individual accomplish more than disorganized people. Employees with an organized
manager will tend to copy the behavior and strive for organization as well.{Rothbauer Wanish,
2009} Planning essentially means looking ahead and understanding, future courses of action to
be followed. Planning takes into consideration available and prospective human and physical
resources the organization so as to get effective combination, contribution, and perfect
adjustment. As planning is the basic management function, it includes formulation of detailed
plans to achieve optimum balance of needs or demands. A few steps of planning involve
establishment of objectives establishment of planning premises, choices of alternative course of
action, formulation of derivative plans, securing co-operation, and follow up with appraisal of
plans. Establishing objectives requires a systematic approach, setting goals, and objectives,
focus the attention on the end results to be accomplished. Goals should be specified in qualified
terms and therefore should be practical, workable, and achievable. Establishing Planning
premises are assumption about the lively shape of events in future a basis of planning used for
finding out what obstacles are in the way of business during operations. During planning an
alternate course of action is always a plus. Each and every alternative will be evaluated by
weighing the pros and cons compared to resources available and requirements of the
organization, after objective and scientific evaluation the best alternative is chosen. Formulating
derivative plans are crucial as the derivative plans are the secondary plans help in the
achievement of the main plan. Following up the plans would be after a course of action is chosen
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and put into action. The selected plan is implemented and approved its effectiveness. The follow
up must go side by side the implementation of plans so after observations are made, future plans
can be made more realistic. {Planning function of, 2012} For a smaller household product an all-
in house manufacturing option seems as if it would work best. This option would have the lowest
cost option allowing more money invested into the high investment needed to facilitate the
equipment. Although you??™d have complete control over quality, all quality problems would be
solely on the company with all in house manufacturing the opportunity to make improvements
during production maximizes. Seeing as there is no other company involved all the controlling,
leading planning, and organizing is on the owner. One may control all manufacturing and
assembly but also having to manager hiring supervisors to lead certain area as well as assistants
to help plan and organize. From managers three control strategies and external forces, the
control aspect of management must be looked after carefully as no matter how efficient,
disgruntled employees may send the work environment into dysfunction. As a leader one must
effectively motivate the employees as well as communicate effectively and effectively use the
power provided. Organizing requires, identification of activities, departmentally organizing the
activities, classifying the authority and coordination between authority and responsibility.
Planning sets up the one for understanding future courses of action that need to be followed.
These factors make up the four basic functions of management.


Erven, B. L. (2009). Retrieved from
Management Study Guide. (2012). Organizing function of management. Retrieved from
Rothbauer-Wanish, H. (2009, June 11). Organizing as a management function. Retrieved from
Planning function of management. (2012). Retrieved from