Everything you need to know about the functions of management. The nature and significance of management can be better understood by studying its function.
Management is the art of getting things done by the people for the accomplishment of predetermined objectives. For attaining these objectives, a manager has to perform a series of functions.
The functions of management refer to those activities which are required to be undertaken for the achievement of organizational goals.
The functions of management can be studied under the following heads:- 1. Main Functions 2. Subsidiary Functions.
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Some of the main functions of management are:- 1. Planning 2. Organizing 3. Directing 4. Staffing 5. Coordinating 6. Motivating 7. Controlling.
Some of the subsidiary functions of management are:- 1. Communication 2. Decision-making 3. Innovation 4. Representation.
What are the Functions of Management: Planning, Organizing, Directing, Staffing, Coordinating, Motivating and a Few Others
Functions of Management – Classification of Managerial Functions – Main Functions and Subsidiary Functions
Management is the art of getting things done by the people for the accomplishment of predetermined objectives. For attaining these objectives, a manager has to perform a series of functions. The functions of management refer to those activities which are required to be undertaken for the achievement of organizational goals.
Classification of Managerial Functions:
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The study of the functions of management is an important topic in the theory of management. Different classification of managerial functions has been attempted by different experts in the field.
Therefore, the various functions of management may be divided into two categories, namely:
(1) Main Functions:
(i) Planning;
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(ii) Organizing;
(iii) Directing;
(iv) Staffing;
(v) Coordinating;
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(vi) Motivating;
(vii) Controlling.
(2) Subsidiary Functions:
(i) Communication;
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(ii) Decision-making;
(iii) Innovation;
(iv) Representation.
(1) Main Functions of Management:
(i) Planning:
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Planning is the conscious determination of a future course of action to achieve the desired results. It is the process of thinking before doing. It depicts a framework within which other management functions will operate. It is a continuous process that takes place at all levels of management.
Planning consists of deciding in advance the following aspects:
a. What is to be done in future?
b. How it is to be done;
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c. Where it is to be done;
d. When it is to be done;
e. By whom it is to be done.
Planning involves the functions of decision-making and problem-solving. In other words, planning involves a selection of business objectives and deciding the future course of action for achieving these objectives.
The process of planning involves a number of steps, as follows:
a. Selection of business objectives;
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b. Establishment of the planning premises;
c. Development of alternative courses of action;
d. Evaluation of alternative courses of action;
e. Selection of best course of action from available alternatives;
f. Formulation of plans (short/medium/long);
g. Making arrangements for effective implementation of plans;
h. Review of existing plans to determine its limitation.
(ii) Organizing:
This provides the necessary framework for the management. It is the creation of a harmonious structure of authority-responsibility relationship. It involves the assignment of grouped activities to various managerial levels. The functions of organizing are to arrange, guide, coordinate, direct, and control the activities of other factors of production.
It is the mechanism through which management directs, coordinates, and controls business operations. The purpose of organizing is to relate organizational people to each other and to work for the achievement of organizational goals. It aims at achieving optimum coordination of business functions. It contributes to the efficiency of the enterprise.
The process of organizing involves the following steps:
a. To establish the objectives, policies, and plans of business;
b. To identify the activities to be performed;
c. To classify those activities into convenient rules;
d. To assign such group activities to different individuals;
e. To delegate authority and fix responsibility for carrying out these activities;
f. To coordinate various activities for goal-achievement.
(iii) Directing:
Directing is the process of instructing, guiding, supervising, motivating, and leading the subordinates for the achievement of organizational objectives. It is concerned with the execution of plans through organized action. It concerns the total manner in which a manager influences the actions of subordinates.
The main activities involved in direction are- (a) Supervising (b) Communicating (c) Motivating (d) Leading.
According to George R. Terry:
a. Direction provides motion to the action;
b. It provides instruction to subordinates for doing some work;
c. It gives them an order for doing the work;
d. It provides motivation to employees;
e. It provides stimulating power among employees.
Directing is a continuous function and is performed at all levels of management.
It consists of the following steps:
a. Issuing orders and instructions by a superior to his subordinates;
b. Motivating subordinates to contribute to the best of their capability;
c. Providing leadership to subordinates to influence group activities;
d. Observing the activities of the subordinates;
e. Helping subordinates to resolve their work problems.
(iv) Staffing:
This refers to the managerial function of acquiring, activating, developing, and maintaining human resources for achieving organizational goals. It also involves upgrading the quality and usefulness of existing members of the organization. It is a process of matching the jobs with individuals. The sole aim of staffing is to take the right man for the right job. It involves proper recruitment, selection, training, placement, promotion, demotion, and finally the retirement of employees.
The basic framework of staffing consists of following sequence of functions:
a. Man-power planning;
b. Selection and recruitment of personnel;
c. Placement and orientation of personnel;
d. Providing training to personnel;
e. Evaluating performance of personnel;
f. Development, promotion/demotion, transfer, etc., of personnel;
g. Determining a fair remuneration policy;
h. Determining retirement policy;
i. Determination of remuneration of personnel.
(v) Coordinating:
This is the art of achieving harmony of individual and group efforts for the accomplishment of organizational goals. It ensures unity of action in the realization of common objectives. It involves synchronization of different actions, so that the planned objectives can be achieved with the minimum of conflict.
It develops team spirit and creates an atmosphere of cooperation among the staff. It is a conscious process of assembling and synchronizing various activities with a view to achieve specific objectives. Therefore, coordinating is the orderly arrangement of group efforts for the accomplishment of the organizational goals.
An efficient manager coordinates in the following ways:
a. Mutual coordination between different departments;
b. Coordination between the efforts of different employees;
c. Coordination between the efforts of employees and managers.
The principles of coordination can be described as follows:
a. Coordination should be started at an early stage;
b. Coordinating parties should meet personally to discuss the matter;
c. The principle of reciprocity helps in coordinating the efforts of both parties;
d. Coordination secures unity of action;
e. It is a continuous and dynamic process;
f. If has a common purpose of getting organizational objectives accomplished.
g. It involves integrating and harmonizing the activities of different departments and individuals for the accomplishment of the organizational goals.
(vi) Motivating:
This means inspiring the subordinates with zeal to do work for the accomplishment of organizational objectives. It is an inner impulse causing man to action. It is a means of triggering human desire to action. It is the act of stimulating individuals to get the desired result. It induces workers to contribute their best efforts for the fulfillment of organizational objectives. It minimizes the waste of human and other resources.
The process of motivation involves the following steps:
a. Providing effective leadership;
b. Inspiring people to cooperate;
c. Effective communication;
d. Providing a climate for subordinates’ development.
(vii) Controlling:
It is a process which enables the management to get its policies implemented and take corrective action if performance is not according to the predetermined standards. It is the process of verifying whether actual performance is in conformity with planned performance. It ensures qualitative and quantitative performance of work in the organization for the achievement of its objective. The main purpose of control is to see whether everything in the organization is being done in accordance with predetermined plans. Control measures the performance, corrects negative deviations, and assures accomplishment of plans by fixing responsibility.
The process of control involves the following steps:
a. Establishing standards of performance;
b. Measuring actual performance;
c. Comparing the actual performance with the standard;
d. Finding variances (or deviations), if any;
e. Taking corrective measures, where necessary.
(2) Subsidiary Functions of Management:
(i) Communication:
It means exchange of ideas, knowledge, opinions, etc., by speech, writing or signs. It is a process of transmitting information from one person to another. It involves a systematic and continuous process of telling, listening, and understanding. It is the life blood of modern business and industry. It helps the management to keep itself informed of various problems, difficulties, and grievances. It helps in securing the largest possible participation in decision-making, planning, and general administration.
(ii) Decision-Making:
The right decision at the right time by the right person is essential for the success of any business. Management has to take numerous decisions in different situations. Right decision helps the management in the growth of a business. Moreover, appropriate decision-making helps in the smooth running of the enterprise.
(iii) Innovation:
It involves preparing people and the organization to face new challenges of fast-changing conditions. The management must try to create new products, new practices, new ideas, and new structures, keeping in mind the needs of the future. The function of innovation involves preparing people and the organization to face new challenges. It enables the management to keep pace with modern techniques and up-to-date demands.
(iv) Representation:
It means representing the business concern in the outside world. It implies an effort to promote the image of the enterprise to the outside world through meetings, seminars, discussions, etc. The management has the responsibility of representing the organization to the various interested groups (e.g., shareholders, Government, customers, employees, suppliers, trade unions, financiers, etc.). The management has to project its own image as well as the image of the organization to the outside world.
Functions of Management – 4 Basic Functions of Management
Management has been defined as a process. Under this process (Planning, organising, staffing, directing, coordinating, motivating and controlling) many works related with each other have been included. These functions are known as the elements of management.
Fayol has divided business activities into six parts which includes the process of management also.
Following are the six activities:
(1) Technical Activities- Activities connected with production have been included in the technical activities.
(2) Commercial Activities- It includes sale and purchase activities.
(3) Financial Activities- It includes the function of making available the capital and using it appropriately (or favourably).
(4) Security Activities- It is concerned with the safety of property and the safety of the people.
(5) Accounting Activities- It includes maintenance of accounts and statistics.
(6) Managerial Activities- Managerial activities include planning, organising, staffing, directing and controlling.
The first five out of these six activities happen to be different in different organisations. For example- a trading concern will not require the first activity but the sixth one which happens to be managerial which is required in every organisation. It means that the activities of a manager are the same in every organisation. Therefore, we shall concentrate on the study of managerial activities or functions of management alone.
(1) Planning:
It refers to thinking beforehand. In other words, planning is the determination of a future course of action to achieve a desired result. Under planning it is ascertained that what should be done, how it should be done and who should do it. If before the commencement of a job all these points are not contemplated than the objective of a business cannot be achieved.
Planning is a long process, for the consummation of which following steps are taken:
(i) Having Perception of Opportunity
(ii) Establishing Objectives
(iii) Determining Planning Limitations or Premises –
(a) External Factors
(b) Interned Factors
(iv) Making a Forecast
(v) Searching for Alternative Courses
(vi) Evaluating Alternatives
(vii) Selecting the Best Alternative
(viii) Formulating of Supporting Plans
(ix) Implementing Plans
(x) Reviewing Plans
(2) Organising:
It refers to harmonious adjustment of various parts to achieve common objectives. In order to make the first function of management (i.e., planning) functional, ‘a structure of roles’ needs to be framed and sustained. The process of creating this structure of roles is known as organising. Planning is just to put some idea in writing, but to convert that idea into reality, a group of people is needed.
Further to streamline the activities of this group of people, organising is required. Under this, the whole project is divided into various small jobs, to assign these jobs to designated posts (which will clarify that a particular job will be performed at which post), to unite various jobs into one department, to clarify the rights and duties of employees to be appointed at various posts, and to define relationship among various posts (employees).
Following steps are taken to complete the organising function of management:
(i) Knowing the Objectives of the Enterprise
(ii) Determining various Activities
(iii) Grouping and Departmentalization of Activities
(iv) Determining Key Activities
(v) Assigning Responsibilities
(vi) Delegating Authorities
(vii) Defining Inter-relationship
(3) Staffing:
It refers to filling and keeping filled the post with people. In planning, ideas are given a written shape, on the other hand organising, with the objective of converting these ideas into reality, prepares a structure of various posts. After organising comes staffing which deploys people on these posts so that jobs can be performed. In view of the fact that the success of an organisation is commensurate with how adroitly every employee performs his job, the importance of staffing function increases even more.
Following steps are taken to culminate the staffing function of management:
(i) Determining the Requirements of Man-power,
(ii) Recruitment,
(iii) Selection,
(iv) Placement and orientation,
(v) Retention
(vi) Training,
(vii) Performance Appraisal,
(viii) Promotion,
(ix) Transfer, and
(x) Separation.
(4) Directing:
It refers to instructing, guiding, communicating and inspiring people in the organisation. The third function of management ensures that staff is deployed for various posts in an organisation. However, even after deployment, work cannot be commenced until the staff is unaware about the objectives of their deployment. Manager fills this gap through the medium of ‘communication’, by telling them about the expectations in the form of defining their jobs.
Once, employees starts up with their work, it becomes the responsibility of a manager to guide them along with providing good leadership. When employees carry on with their work following the directions under the leadership of a manager, it becomes his responsibility to keep a close eye on their work and resolve their work related problems.
Thus the supervision of a manager is required. After this one more responsibility of manager comes into picture, i.e., to motivate his employees from time to time so that they work with full energy and dedication.
In this manner under directing following four activities are included:
(i) Supervision
(ii) Communication
(iii) Leadership
(iv) Motivation
Brief description of these four activities is as follows:
(i) Supervision:
It refers to monitor the progress of routine work of one’s subordinates and guiding them properly. Supervision is an important element of the directing function of management. Supervision has an important feature where face to face contact between supervisor and his subordinate is a must.
(ii) Communication:
It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him understand them. A manager has to continuously tell his subordinates about what to do, how to do, and when to do various things. Also, it is very essential to know their reactions.
To do all this it becomes essential to develop effective communication facilities. Communication by developing mutual understanding inculcates a sense of cooperation which builds an environment of coordination in the organisation.
(iii) Leadership:
It refers to influencing others in such a manner to do what the leader wants them to do. Leadership plays an important role in directing. Only through this quality, a manager can inculcate trust and zeal among his subordinates.
(iv) Motivation:
It refers to that process which excites people to work for attainment of desired objective. Among the various factors of production, it is only the human factor which is dynamic and provides mobility to other physical resources. If human resource goes static then other resources automatically turn immobile. Thus, it becomes essential to motivate human resource to keep them dynamic, aware and eager to perform their duty. Both monetary and non-monetary incentives are given to employees for motivation.
(5) Controlling:
It refers to bringing the actual results closer to the desired results. Under this, the manager monitors whether the jobs are being performed in accordance with the set plans or not. He also checks whether the quality and quantity of job performed is in alignment to the pre-determined standards / parameters or not. Deviations are then checked for by matching actual performance with pre-determined standards.
After this corrective action is taken for negative deviations so that the difference between actual result and desired results can be minimised. Thus, with the enforcement of controlling process all the bottlenecks coming in the way of work-progress are removed and efforts of all the people start approaching in the desired direction.
In the form of conclusion, controlling process has five main steps:
(i) Setting performance standards,
(ii) Measurement of actual performance,
(iii) Comparison of actual performance with standards,
(iv) Analysing deviations, and
(v) Taking corrective action.
Functions of Management – What are the Six Functions of Management (According to Henry Fayol, Newmann and Summer)
Every organization needs to perform certain set of activities in order to run the enterprise.
Henry Fayol, divided all activities of industrial undertakings into six groups:
1. Technical
2. Financial
3. Accounting
4. Commercial
5. Security
6. Managerial
The functions concerned with activities of producing, purchasing, selling, advertising, accounting and engineering vary from one organization to the other. However, the functions of management are common to all types of organizations including non-profit organizations. As per Fayol principles of management are used as rulebook and guide while elements of management provide function.
He grouped these elements into five managerial functions as:
1. Planning
2. Organizing
3. Commanding
4. Coordinating
5. Controlling
The classification of managerial functions provided by Henry Fayol is widely accepted and praised, however there are other classifications as well.
The greatest management expert Mr. Luther Gullick has described following functions under the catchword ‘POSDCORB’ where:
P = Planning
O = Organizing
S = Staffing
D = Directing
CO = Coordination
R = Reporting
B = Budgeting
Reporting is a part of control function, while budgeting represents both planning and controlling.
Similarly, Newmann and Summer classified managing process as the functions of:
1. Organising.
2. Planning.
3. Leading.
4. Controlling.
Another useful method of classifying managerial functions is to group them around the components of planning, organising, staffing, directing and controlling.
Functions of Management:
The functions of management are common to all organizations in other fields but the manner in which these are carried out may not be the same. Similarly in job of a manager, relative importance of each of them will vary with situation and hierarchical level.
1. Planning:
Planning is the basic function of the management and involves deciding in advance what is to be done, how, when and where it is to be done. Planning is futuristic in nature. It is a continuous process that fills the gap between where we are and where we want to reach. It involves establishment of objectives and determining means to achieve these objectives efficiently and effectively.
Planning is a fundamental (basic) function of management and influences all other functions of management, and is used equally by all kinds of organisation be it businesses, governments or even non-profit organizations.
Planning process comprises determination and laying down of:
(i) Objectives,
(ii) Policies,
(iii) Procedures,
(iv) Rules,
(v) Programmes,
(vi) Budget, and
(vii) Strategies.
Planning can be both long short term and long term, short-range plans should be properly coordinated with long-range plans to ensure synchronisation and efficiency. Planning is not only the function of top management or any particular department in fact– it is required at all levels of management be it higher level, middle level or lower level; and in all departments of an organization and thus every manager irrespective of his position in the management hierarchy must plan within the limits of his authority and decisions of his / her superiors.
After deciding the organizational objectives, the management has to determine the various activities and the resources required to achieve the same. Organizing is concerned with both the “orderly” assembling of human resources in terms of roles and relationships (reporting structure) and material resources (acquisition and flow) and the processes involving identified and distinguished tasks.
Organizing process consists of the following steps:
1. Determination of activities of the enterprise keeping in view its objectives.
2. Classification of such activities into suitable groups for the purpose of division of work.
3. Assignment of these groups of activities to individuals.
4. Delegation of authority and fixing of responsibility for carrying out the assigned duties.
5. Coordination of these activities and authority relations throughout the organization.
Division of work among people and coordination of their efforts to achieve specific objectives are the fundamental aspects of organization. It is understood that organization should be based upon sound applications of organizational principles.
3. Human Resource Management / Staffing:
Finding the right man and placing him to the right job is known as staffing. The positions and their functional relations established by process of Organization are filled by HR or Staffing function. HR process provides the organization with adequate number of competent and qualified personnel at all levels in the enterprise.
As successful performance by individual largely determines success of the structure, managers need to:
1. Properly estimate manpower requirements of the organization.
2. Identify the qualifications and set of skills expected for efficient discharge of duties.
3. Lay down suitable selection and placement procedures.
4. Develop employee skill through training and appraisal schemes.
5. Devising suitable schemes of compensation.
A new enterprise needs to employ people to fill positions established in the organization. Owing to the factors such as death, retirement, resignation, termination, promotion, demotion, transfer, changes in objectives as well as methods, etc. also require continuous filling of positions, making HR a continuous function.
Directing involves leading, guiding, supervising and motivating the employees to perform their jobs efficiently in order to achieve organizational goals. It helps to convert plans into action. Motivation, communication, leadership and supervision are its main elements. Its most important advantage is that it cultivates in the employees the sense of oneness belonging with their employer.
5. Co-Ordination – The Essence of Management:
Coordination is elementary function and essence of management It is the force that integrates all functions of the management. Managers at each level are required to perform this function for smooth operations in the organisation.
Thus, coordination means synchronization of the efforts of different groups of persons from various units in an organisation. In any organization, each employee has his own values and aspirations.
Management tries to maintain a good bond between organisational and individual objectives. It utilizes their knowledge and experience of individuals for the achievement of organisational objectives. At the same time, it also tries to do justice to employees’ objectives. For example, the objective of employees is generally to get maximum remuneration whereas the objective of the organisation is to increase the production and wealth.
Managers coordinate both by motivating the employees to achieve higher remuneration by producing more, which ultimately helps in realizing the objectives of both sides. Coordination can be many times confused with cooperation. It is believed if cooperation exists, coordination will automatically follow.
1. Coordination is responsibility of every manager from top to bottom in hierarchy. It should be understood that contribution of each individual leads to accomplishing objectives of department and higher level objectives of organization.
2. In order to achieve synchronization of individual efforts, it is necessary to ensure coordination in early stages of planning and policy making. Coordination is a never ending process. It starts with the functions of planning and continues till controlling.
3. Coordination integrates group efforts. Coordination gives a common direction to group efforts to ensure that work is performed according to the plans. Such need arises as individuals working in an organization have different backgrounds and styles of working.
4. Good communication is vital for coordination, constant change in business environment requires changes in plans and policies, compromises and adjustments and objectives of organization will not be achieved if these changes are not communicated well in time.
Even with proper planning, right matching of skills of person with the task, and proper direction, there is always a possibility that things might drift away from plans. It means; it is not sure that work will always proceeds according to plans established. Controlling thus involves the process of visualizing whether the activities have been or are being performed in the same way as planned because any deviation will result in inefficiency in the organization.
To check, if there is any deviation then finding the reason of the same and correcting it is a part of controlling function. Controlling thus tends to complete the full cycle of the process of management through which managers accomplish results.
A good control system should suggest corrective measures in advance so that negative deviations may not re-occur in future. This can be done with the use of principle of feedback to be incorporated in the management system. All this makes control very closely associated with planning.
Functions of Management – 5 Important Functions
The elements of management process are known as functions of management. There is, however, no single list of functions acceptable to all. Various authors have classified these functions differently. Henri Fayol has classified them into planning, organizing, staffing, directing and controlling, (P, O, S, D and C).
Thus, for the sake of analysis of the management process we can classify the management functions into the following categories:
1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling.
Function # 1. Planning:
Planning lays down the objectives to be achieved and the step to be followed to achieve them. It is a mental process requiring the use of intellectual facilities, foresight and sound judgement. It involves selecting and relating the future in the visualisation and formation of proposed activities believed necessary to achieve the desired results.
It involves deciding in advance what to do, when to do, where to do and who is to do and how the results are to be evaluated. Thus, planning is the systematic thinking about the ways and the means for the accomplishment of predetermined objectives.
Planning involves the following steps:
(i) Determination of objectives
(ii) Forecasting
(iii) Formulation of policies and programmes
(iv) Preparation of schedules
(v) Budgeting
Planning includes determination of the objectives, policies, rules, programmes, strategies, budgets and procedures. The purpose of planning is to minimise the risk and to make at the same time full advantage of the available opportunities. It bridges the gap from where we are and where we want to go. Good planning is flexible in nature as it can adjust to changes in business conditions. It covers both short-term and long-term periods.
Function # 2. Organising:
Organising is an important function of management by which management brings together the human and material resources. This function must be performed when an activity involves two or more persons. Organising involves determining the activities to be done, grouping the activities, assigning the grouped activities to individuals and creating a structure of authority and responsibility among the people to achieve the objectives of the enterprise.
Urwick define organising as determining what activities are necessary to achieve any purpose and arranging these in groups which may be necessary to assign to the individual. The process of organisation involves the determination of authority and responsibility relations in the organisation.
An important function of every manager is to determine the nature of the activities required to attain the group goals, the grouping of these activities and the assignment of the activities to the individuals with necessary delegation of authority.
The process of organisation involves the following steps:
(a) Determination of objectives,
(b) Identification and grouping of activities,
(c) Assignment of duties to individuals, and
(d) Development of relationships.
Function # 3. Staffing or Human Resource Management:
After organising the various activities to be performed, management is in position to know the manpower requirements of the enterprise at different levels in the organisation structure.
After determining the number and types of personal to be selected to fill different jobs, management proceeds with resulting, selecting and training the people to fulfil the requirements of the enterprise. In a running enterprise, staffing is a continuous process because new jobs are created in the enterprise and existing employees leave the enterprise.
Staffing comprises of those activities which are essential to keep manned the positions created by the organisation structure. It includes the task of determining the requirements with regard to number and types of people for the jobs to be done, laying down qualifications for various jobs and recruiting, selecting and training people to perform those jobs efficiently.
Staffing is concerned with both managers and non-managers. It is a function performed by managers at all levels. Staffing was considered a part of organising. But with the recognition of the importance of the human factor in industry and business, it began to be considered as a separate function.
Staffing usually includes the following activities:
(i) Human resource planning
(ii) Deciding sources of recruitment
(iii) Receiving application
(iv) Testing and interviewing
(v) Final selection and appointment letter
(vi) Orientation and placement
(vii) Training and development
Function # 4. Directing:
Direction is the process of guiding, supervising, leading and motivating the subordinates to work in a way that is beneficial to the enterprise. The manager not only shows the right path but also leads the subordinates to achieve the objective of the enterprise. He creates a sense of belongingness faith and loyalty among the subordinates.
The direction functions involve the following four elements:
(i) Leadership:
Leadership is the process by which a manager guides and influences the work of others in choosing and attaining specified goals. According to Chester Barnard, leadership is the quality of the behaviour of the individuals whereby they guide people towards the accomplishment of some common goal.
(ii) Communication:
A manager has to tell the workers that they are required to do, how to do and when to do it. It has to create an understanding in the minds of the subordinates of work to be done.
(iii) Motivation:
It is the function of a manager to motivate the people working under him to perform the work assigned. A successful manager has to make proper use of motivation to enthuse the people to work harmoniously for the attainment of the desired objectives.
(iv) Supervision:
Supervision is the process by which conformity between planned and actual results is maintained. Effective supervision ensures greater output of high quality. It teaches the subordinates the way their are to be performed.
Function # 5. Controlling:
According to Fayol, “In an understanding control consists of verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles established.” Controlling is that management activity whereby the managers compare actual performance against the planned one, find out the deviations, take corrective action to remove the deviations, incorporate positive deviations, in the plans and help ensure the realisation of the specific goals.
In a running concern, planning and control go together because planning seeks to set consistent, integrated and articulated events conform to plans. The most notable feature of the process of control is that it is forward-looking. A manager cannot control the past but can avoid the problems in future by taking actions in the light of past experiences.
The control process consists of the following steps:
(i) Setting up of standards.
(ii) Measuring performance.
(iii) Comparing performance with standards.
(iv) Taking corrective action.
Although planning must precede controlling, plans are not self-achieving. Plans guide managers in the use of resources to accomplish specific goals; then activities are checked to determine whether they conform to the plans.
Inter-Relationship between Managerial Function:
Managing is a continuous process consisting of:
(i) Planning
(ii) Organising
(iii) Staffing
(iv) Directing
(v) Controlling
When a manager reaches the last step, viz., control, his job does not end here. Actually, he will again start with planning on the basis of his past observations and experience and his projection about the future. One cannot say that a manager will organise only when the job of planning is over or will direct only when the stage of organising is completed. In practice, a manager has to perform these activities simultaneously to achieve the desired objectives.
Thus, for theoretical purposes, it may be convenient to separate management functions, but practically they defy such categorisation. They are highly inseparable. Each functions blends into other functions and affects the performance of others and is also affected by the others. In other words, the functions of management are interdependent and inter related.
Functions of Management – Henry Fayol’s Functions of Management: Planning, Organizing, Staffing, Directing and Controlling
The nature and significance of management can be better understood by studying its function. Among those who tried to analyse the function of management. Henry Fayol’s name is most outstanding. Fayol’s approach to the functions of management has been widely, accepted and all authorities have practically based on such functions.
Management implies the pooling of material resources and, organizational efforts of many individuals to be directed and guided towards the attainment of business goals. Hence, manager has to think, plan, guide and direct the operations in a systematic sequence to achieve the expected results.
The important functions are as follows:
Function # 1. Planning:
Planning is a basic managerial function. It helps in determining the course of action to be followed for achieving the various organizational objectives. It is process of deciding the business targets and charting out the attaining those target. It can be described as the process of thinking before doing. Planning involves the definition of objectives and planning the operations in terms of policies of that organisation. Plans and budgets which will establish most advantageous course for business enterprise.
It means the determinations of what is to be done, how and where it is to be done, who is to do it and how results are to be evaluated. The primary objective of planning is to achieve and developing policies, procedure, programmes and strategies. It is a continuous process that takes place at all the levels of management. Planning is thus looking ahead and preparing for future.
Function # 2. Organizing:
It is a function of giving concrete shape to the business plans. It is systematic arrangement of different aspects of business operations to achieve planed objectives. The function of organizing is to arrange, guide, co-ordinate, direct and control different activities of other factors of production viz., Men, Material, money and machines so as accomplish the objectives the enterprise. The character and type of organization depends upon the size and nature of enterprise. A sound organization contributes greatly to the continuity and success of an enterprise.
The elements of organization are:
i. Grouping activities
ii. Allocation of duties
iii. Fixation of responsibility
iv. Delegation of authority
v. Establishment of co-ordinated relationship between different components of authority
vi. Mobilization of fixed and working capital
vii. Provision of equipment and work facilities.
Function # 3. Staffing:
Since management consists of getting things done through the people, people would be called the dynamic element of the management. Without people, things will remain idle. Hence, management must attempt to fill the organization with suitable people will be known as Staffing. It includes men, power planning, recruitment, selection, training and promotion.
The staffing function involves managing the positions created by organization. Staffing involves the selection and training of future managers. It also concerns the promotions, appraisals, rotation and a wise system of compensation.
Thus staffing consists of the following:
i. Man-power i.e., assessing manpower requirements in terms of quantity and quality.
ii. Recruitment, selection and training.
iii. Place of man power.
iv. Development, promotion, transfer and appraisal.
v. Determination of employee remuneration.
Function # 4. Directing:
Directing is concerned with carrying out the desired plans- management is the art of getting things done. Therefore, the managers have responsibility not only of planning and organizing the operations, but also guiding and supervising the subordinates. This is the managerial function of direction.
The function of direction has three essential components i.e. issuing orders and instructions. Guiding and teaching the subordinates in proper method of work, supervising the subordinates to ensure that their performance is according to plans. Directing was identified by Henry Fayol as the function of command.
In modern times, the following important aspects of this function are usually identified:
i. Leadership,
ii. Communication,
iii. Motivation, and
iv. Supervision.
Determination is a continuous function and is performed at all levels of management.
Function # 5. Controlling:
In terms of managerial functions control consists of step taken to ensure that the performance of business organization confirms to its plans. Control essential for achieving the objectives of an enterprise. A manager is responsible for controlling the work for which he is accountable. The managerial function of control is inseparably connected with the function of planning.
Unless the management fix the clear objectives of organization, effective control is almost impossible. The most notable feature of the process of control is forward looking. The manager can study the past, not the finding and avoid unprofitable in future.
Control is a live function and executives at various levels assess the performance of their subordinates. Control is a process which enables management to get its policies implemented. Control is not possible without planning and planning is meaning less without control.
Luther Gullick gave a formula word to indicate the function of management i.e., POSDCoRB-
‘P’ Stands for Planning.
‘O’ Stands for Organising.
‘S’ Stands for Staffing.
‘D’ Stands for Directing.
‘Co’ Stands for Co-ordination.
‘R’ Stands for Reporting.
‘B’ Stands for Budgeting.
Almost simultaneously with Taylor, Henry Fayol a French industrialist and manager, developed his theory of management. He was the first to suggest the functions of modern management which are recognized as the essential part of manager’s work by the modern authorities on management. Hence he may will be described as the father of modern management theory. In contrast to Toylor’s emphasis on first-line supervision in production area. Henry Fayol’s work is concerned with the higher levels of organization.
In his work ‘General and industrial management’ he identified following six activities which have to be accomplished in all industrial organization:
i. Technical (Concerned with Production)
ii. Commercial (Concerned Buying, Selling and exchange)
iii. Financial (Concerned with optimum use of capital)
iv. Security (Protection of property)
v. Accounting (determination of financial position)
vi. Managerial (function of Management like planning, Organizing etc.)
Functions of Management – 10+ Important Functions by Scholars of Management
Scholars in the field of management have their own classification of functions of management. Some scholars add few functions and delete some other functions.
The important functions of management are briefly discussed below:
1. Planning:
Planning is the primary function of management. Nothing can be performed without planning. Writing a book starts with planning. In short, planning refers to deciding in advance that which will be done in the near future. In the business world, the organisation should achieve the objectives. In order to achieve objectives, the organisation plans what is to be done, when it is to be done, how it is to be done, and by whom it is to be done.
Messie says, “Planning Pervades Management”. George R. Terry has rightly said, “Planning is a constructive reviewing of future needs so that present actions can be adjusted in view of the established goal. It is deliberate conscious research used to formulate the design and orderly sequence of actions through which it is expected to reach objectives. Planning should take place before doing; most individual or group efforts are made by determining before any operative action takes place, what shall be done, where, how and who shall do it”.
2. Organising:
Organising is the distribution of work in group wise or section wise for effective performance. Organisation provides all facilities which are necessary to perform the work. The business developed, the organisation takes responsibility to create some more departments under different managers. Hence, the organisation divides the total work and co-ordinates all the activities by authority relationship. Besides, organising defines the position of each person in the organisation and determines the paths through which communication should flow. The manager would determine who should report to whom and how.
According to Henry Fayol, “Organisation is of two kinds i.e., organisation of the human factor and organisation of the material factor. Organisation of the human factor covers the distribution of work to those who are best suitable along with authority and responsibility. Organisation of the material factor covers utilisation of raw materials, plant and machinery etc.” According to Knootz and O’Donnell, “Organising consists of conscious co-ordination of people towards a desired goal”.
3. Staffing:
Staffing function comprises the activities of selection and placement of competent personnel. In other words, staffing refers to placement of right persons in the right jobs. Staffing includes selection of right persons, training to those needy persons, promotion of best persons, retirement of old persons, performance appraisal of all the personnel, and adequate remuneration of personnel. The success of any enterprise depends upon the successful performance of staffing function.
According to Harold Knootz and Cyril O’Donnell, “the managerial function of staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”.
4. Directing:
The actual performance of a work starts with the function of Direction. Planning, organising and staffing functions are concerned with the preliminary work for the achievement of organisational objectives. But the direction deals with making the workers learn techniques to perform the jobs assigned to them. Direction includes guidance, supervision and motivation of employees. According to Joseph Massie, “Directing concerns the total manner in which a manager influences the action of his sub-ordinates. It is the final action of a manager in getting others to act after all preparations have been completed”.
5. Co-Ordinating:
All the activities are divided group wise or section wise under organising function. Now, such grouped activities are co-ordinated towards the accomplishment of objectives of an organisation. The difficulty of co-ordination depends upon the size of organisation. The difficulty of co-ordination is increased with the increasing of the size of the organisation. According to Knootz and O’Donnell, “the last co-ordination occurs when individuals see how their jobs contribute to the dominant goals of the enterprise. This implies knowledge and understanding of enterprise objectives”.
6. Motivating or Actuating:
The goals are achieved with the help of motivation. Motivation includes increasing the speed of performance of a work and developing a willingness on the part of workers. This is done by a resourceful leader. The workers expect favourable climate conditions to work, fair treatment, monetary or non-monetary incentive, effective communication and gentleman approach. According to Earl P. Strong, “Motivating is the process of indoctrinating personnel with unity of purpose and the need to maintain a continuous, harmonious relationship”.
7. Controlling:
Controlling function ensures that the achieved objectives conform to pre-planned objectives. Necessary corrective action may be taken if there is any deviation. The control is very easy whenever the organisation has a fixed standard. A good system of control has the characteristics of economy, flexibility, understanding and adequacy to organisational needs.
Prof. Theo Haimann defines, “Control is the process of checking to determine whether or not, proper progress is being made towards the objectives and goals and acting, if necessary, to correct any deviation.” According to Henry Fayol, “control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles issued”.
8. Innovation:
Innovation refers to the preparation of personnel and organisation to face the changes made in the business world. Continuous changes are being made in the business. Consumers are satisfied through innovation. Innovation includes developing new material, new products, and new techniques in production, new package, and new design of a product and cost reduction.
9. Representation:
A manager has to act as a representative of a company. He has dealings with customers, suppliers, government officials, banks, financial institutions, trade unions and the like. It is the duty of every manager to have good relations with others.
10. Decision-Making:
Every employee of an organisation has to take a number of decisions every day. Decision-making helps in the smooth functioning of an organisation.
11. Communication:
Communication is the transmission of human thoughts, views or opinions from one person to another person. Workers are informed about what should be done, where it is to be done, how it is to be done and when it is to be done. Communication helps the regulation of job and co-ordinate the activities.
Planning, organising, staffing, directing, co-ordinating, motivating or actuating and controlling are the main functions of management. Innovation, representation, decision-making and communication are the subsidiary functions of management.
Henry Fayol classifies the functions of management as – forecasting, planning, organising, commanding, co-ordinating and controlling.
Luther Gullik classifies the functions of management as:
POSDCORB, where –
P stands for Planning,
O for Organising,
S for Staffing,
D for Directing,
Co for co-ordinating,
R for Reporting, and
B for Budgeting.
According to Harold Koontz and Cyrill O’Donnel, the functions of management include planning, organising, staffing, directing and controlling.
George Terry deals with the functions of management such as – planning, organising, actuating and controlling.
Tennenbuam et.al., classify functions of management as planning, organising and controlling.
Harold Smiddy of G.E., divides the functions of management into planning, organising, integrating and measuring, abbreviated as POIM.
E.F.L. Brech classifies functions of management as planning, motivation, co-ordination and control.
According to Lawrence A. Appley, functions of management include planning, executing and controlling.
L. Hall classifies the function of management as forecasting, planning, control, motivation and co-ordination.
Massic divides the functions of management into planning, organising, staffing, control, communication and direction.
According to Mary Cushing Nillas, the functions of management include organisation, co-ordination, administration and leadership.
Functions of Management – 6 Important Functions – Planning, Organizing, Staffing, Directing, Controlling and Co-Ordination
The functions of management include the following:
1. Planning:
Planning is the first and foremost function of the management. All other .functions are based on planning function. Manager has to determine in advance what it is to be done, when it is to be done, and how it is to be done. Optimum utilization of resources is out of question without planning.
Planning eliminates the tendency to work in a haphazard fashion. It sets the direction for the entire organization to proceed towards the goals. Planning may be regarded as the process of determining objectives, discovering alternative courses of action and selecting an appropriate course of action for accomplishing goals. In the absence of planning, no other managerial function can be performed.
Plans are not rigid and they are supposed to be flexible in response to changes in external environment.
The entire planning function revolves round the following:
i. Determination of objectives for the organization.
ii. Formulation of policies, budgets, programmes and schedules.
iii. Formulation of plans of action both strategic and operational.
iv. Forecasting.
v. Decision making.
Planning is an ongoing process, a persuasive function and done across the levels of management.
2. Organizing:
The term ‘organizing’ generally connotes assembling men, money, material and technology together. But in organizational context, organizing is the process of establishing harmonious relationship among the members of an organization and the creation of network of relationship among them. Under organizing function, work is assigned to employees, who are given authority to carry out the work assigned and made accountable for it.
Organizing involves the following activities:
i. Determining the total activities of business essential to accomplish organizational objectives.
ii. Dividing and sub dividing the total activities into identifiable groups.
iii. Grouping the activities of similar nature in terms of departments/sections/ units.
iv. Delegation of authority to respective departments.
v. Coordinating the functions of different departments for accomplishing the overall goals of an organization.
3. Staffing:
Once plans are put in place, and the structure of the organization has been designed, managers seek to fill up the organizational slots with suitable manpower.
This requires the following functions to be performed:
i. Determination of manpower requirements for the whole organization.
ii. Arranging to identify eligible candidates and persuading them to apply for the vacancies.
iii. Selecting suitable candidates.
iv. Formulating HR policies for governing manpower of the organization.
v. Periodical training of manpower and their development.
vi. Compensating the manpower and incentivising decisions.
vii. Installing grievance redressal mechanism.
viii. Periodical evaluation of human resources and promotion decision.
ix. Transfer, promotion, disciplinary actions and termination.
x. Motivation of employees.
xi. Putting in place employee well-being measures and career development opportunities.
All the aforesaid areas fall within the ambit of staffing domain.
4. Directing:
Directing denotes motivating, leading, guiding and communicating with subordinates on an ongoing basis in order to accomplish pre-set goals. Employees are kept informed of all necessary matters by circulars, instructions, manuals, newsletters, notice-boards, meetings, participative mechanisms, etc., in order to enable the employees to accomplish the organizational goals.
The process of directing involves the following:
i. Issuing orders and instructions regarding the work to be performed.
ii. Guiding, counseling, mentoring and educating the employees.
iii. Supervising the work of employees on a regular basis.
iv. Maintaining discipline among employees and rewarding those who perform their jobs efficiently.
v. Motivating the employees and inspiring subordinates to follow the orders and instructions.
vi. Providing effective leadership to employees.
5. Controlling:
The process of controlling is the final function carried out in terms of planning. This function is performed to evaluate the performance of employees and deciding increments and promotion decisions. The control function helps in identifying under-performers and arranging remedial training for them. It is the control function which facilitates synchronisation of actual performance with predetermined standards.
The following activities are performed under control function:
i. Fixing performance standards for subordinates.
ii. Measuring the actual performance in the light of standards.
iii. Comparing the actual performance with standards.
iv. Finding out the causes for deviation and analyzing them.
v. Undertaking corrective measures in order to bring actual performance to the standards set.
vi. Besides various control devices like accounting, auditing, management information system, network analysis and cost control, financial tools are also used in organizations for control purpose.
6. Co-Ordination:
Coordination is the process of synchronising the diverse functions of domains and securing unity of action. It is compared to chariot driven by multiple horses. The charioteer has to drive all die horses in one direction. Similar is the case of an organization.
The CEO is charioteer like Lord Krishna in Mahabharat. It is a conscious and rational process of pulling together various department of an organization and unifying them into a team to accomplish goals in an effective manner.
Functions of Management – 7 Functions of Management according to Fayol, Urwick, Koontz & O’Donell, Chester I. Barnard, Louis Allen, Mooney and Railey and P. F. Drucker
Function # 1. Planning:
Planning is deciding in advance what is to be done. It is the determination of a course of action to achieve a desired Result. A plan is, then, ‘a projected course of action’. All planning involves anticipation of the future course of events and, therefore, bears an element of uncertainty in respect of its success.
Fayol pointed out, “The plan of action is, at one and the same time, the result envisaged, the line of action to be followed, the stages to go through; and methods to use. It is a kind of future picture wherein proximate events are outlined with some distinctness, whilst remote events appear progressively less distinct.” Planning is a mental process requiring the use of intellectual faculties, imagination, foresight, sound judgment, etc.
Planning involves- (a) problem-solving (identification of alternatives), and (b) decision-making (selection from alternatives). In planning, a manager searches for the alternative courses open to him and then selects from these alternatives to determine general and specific objectives and detailed means for achieving them.
Some writers on Management starting with F.W. Taylor, the father of Scientific Management Movement, are of the view that planning should be separated from performance but it is recognised by most people that planning and responsibility for planning cannot be completely separated from managerial performance because all managers plan, whether they are at the top middle, or bottom of the organisation structure. The function of planning incorporates forecasting as it is only through anticipation of future that a manager can decide upon the future course of action.
Function # 2. Organising:
The function of organising proper is the creation of a structure of duties and functions for the attainment of the objectives of the concern. The organisation structure consists of a series of relationships at all levels of authority. Urwick defines organisation as “determining what activities are necessary to any purpose (or plan) and arranging them in groups which may be assigned to individuals”.
It is an important function of management to organise the enterprise by grouping the activities necessary to carry out the plans into administrative units, and defining the relationships among the executives and workers in such units. Organisation deals with the human and material factors in business.
Mostly, the human material is given and is the most serious headache of an organiser. He takes the short and easy way of trying to mould his organisation according to the fancies and peculiarities of the men under him. But this is not proper. An outline of the organisation must be thought out beforehand, and the organiser should try to fit men to his ideas, rather than ideas to men.
He may have to make deviations here and there but such deviations should be temporary; to be given up as soon as an opportunity comes. Fayol says in this connection, “See that human and material organisations are suitable” and “ensure material and human order”.
Function # 3. Staffing:
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc.
The main purpose of staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Koontz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of personnel to fill the roles designed in the structure”.
Staffing involves:
i. Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
ii. Recruitment, selection and placement.
iii. Training and development.
iv. Remuneration.
v. Performance appraisal.
vi. Promotions and transfer.
Function # 4. Directing:
In practice, management is essentially the art and process of getting things done. The managers have, therefore, the responsibility not only of planning and organising the operations but also of guiding and supervising the subordinates. This is the managerial function of direction.
The function of direction has three essential components:
(i) Issuing of orders and instructions;
(ii) Guiding and teaching the subordinates in the proper methods of work; and
(iii) Supervising the subordinates to ensure that their performance conforms to the plans.
Directing was identified by Henri Fayol as the function of command.
In modern times, the following aspects of this important managerial function are usually identified:
(i) Leadership,
(ii) Communication,
(iii) Motivations.
(iv) Supervision.
The function of direction involves the exercise of the functions of leadership. Leadership, according to Chester I. Barnard, “is the quality of the behaviour of individuals whereby they guide people or their activities in organised effort.” A leader has the function of interpreting the objectives of group effort and guiding or leading the group as a team towards the realisation of these objects. Managers at all levels act as leaders because they have subordinates (followers) whose efforts have to be channelised in a definite direction. As leaders, they have not only to show the way but also to lead the group towards it.
In doing this, the manager leading the whole or a part of the organisation has to set an example to his followers. He has to establish both by conduct and expression the community of interests which prompts people in a group to work together for certain given ends.
The process of leadership as a part of the function of direction requires effective communication between the leader and the led as also between one subordinate and the other. Simply stated, the process of communication is the passing of information and understanding.
According to Louis Allen “Communication is the sum of all things one person does when he wants to create understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding”. It is the responsibility of management to establish and maintain channels whereby it can convey its own thinking and policies to the subordinates and can receive their reactions and an account of their problems.
Motivation means the creation among the personnel the willingness to work and cooperate for the accomplishment of common objectives. A manager, in managing, must motivate people to highest productivity. All administrative action loses its point unless the members of the enterprise are willing to contribute their effort for the fulfilment to their assigned tasks.
The role of motivation is to develop and intensify a desire in every member of the organisation to work effectively in his position. The task of creating effective motivation calls for a proper appreciation of human behaviour. Management has to rely on the insights provided by sociologists, psychologists, and social anthropologists for such appreciation.
The management must realise that individual reactions to particular instruction or measures will depend upon such factors as- (i) the individual’s needs and characteristics, (ii) his emotional and temperamental make-up, (iii) the pattern of his beliefs, and (iv) the social organisation (say, the informal group) of which he is a part. Any attempt to motivate people must take these factors into account.
Literally supervision means overseeing (super = above or over, and vision = sight or seeing). In directing his subordinates, the managers have generally to exercise supervision over them in the sense that they have to personally watch, direct and control their performance. In doing this, they have to plan the work of their subordinates, give them directions and instructions, guide them, and what is most important, exercise leadership in gearing the subordinates together into a team.
He has to listen to their grievances and complaints and maintain discipline and work standards. Thus, the function of supervision has two broad aspects to it- (a) technical guidance and direction, and (b) human relations and leadership. This function assumes greater importance at the lower levels of management as compared to the top or higher levels.
Function # 5. Controlling:
Controlling is ordinarily understood as giving of orders or restricting. But properly speaking, it means to guide something or somebody in the direction in which it is intended to go. In terms of managerial functions, control consists of the steps taken to ensure that the performance of the organisation conforms to the plans. A manager is responsible for controlling the work for which he is accountable.
The managerial function of control is inseparably connected with the function of planning. Unless the management is able to fix in clear and unambiguous terms the objectives of the organisation and can chart out a clear and realistic course of action for their attainment, effective control is almost impossible.
The most notable feature of the process of control is that it is forward-looking or futuristic. A manager cannot, for obvious reasons, control or do anything about past. He can study the past, note the pitfalls and avoid them in future with a view to preventing their recurrence.
Function # 6. Co-Ordination:
That there should be specialisation of functions in a business concern goes without saying. Along with specialisation there must be conscious effort on the part of management to see that all activities, carried on by experts and different departments, should contribute to the achievement of the objective of the business.
All activities not essential to the main objectives, howsoever attractive, must be eliminated. It is important to ensure that the different departments do not work at cross-purposes. The danger is too great. Salesmen are never tired of pointing out how they could make more sales if only the product was changed this way or that.
Engineers often hate the idea of changes suggested by salesmen. The finance manager will never like extending of credit terms to customers thus causing displeasure to the sales manager. There is the paramount need, therefore, to see that everybody in the business understands the main objectives of the business and works towards their achievement in active co-operation with others. This is the object of co-ordination.
Co-ordination is concerned with synchronising and unifying the actions of a group of people. Mooney and Railey define co-ordination as “the orderly arrangement of group effort to provide unity of action in pursuit of a common purpose.” Instead of regarding it as a separate function of management, it must be considered as the essence of managership.
Function # 7. Decision-Making:
The task of management involves making of countless decisions, so much so that some believe that management is decision-making. “Whatever a manager does”, writes P.F. Drucker, “he does through making decisions.” According to Melvin T. Copeland, “administration essentially is a decision-making process and authority is responsible for making decisions and for ascertaining that the decisions made are carried out.”
Decision-making is as important in planning as in organisation, co-ordination and control, for in each of these functions, the manager has to choose from among a number of alternative courses of action. Chester I. Bernard has distinguished between two classes of acts—those which are the result of deliberation, calculation, thought and those which are unconscious, automatic, responsive.
In his view the former are decisions. But according to him, there are many subsidiary acts in decisions, which are themselves automatic and of which the processes are usually unknown to the actor himself.
The reason why business decisions have to be preceded by systematic deliberation is that there are many alternative courses to most business situations.
A decision may relate to the end or means or both. In some cases an end may be given and the manager is to decide upon the best means of attaining it. In others, the end may have also to be decided through the logical process of reasoning and analysis.