Function of Management in Business Management

FUNCTIONS OF MANAGEMENT
• Effective management is an important factor of the
organizational function, leading function and the controlling
function.
• The manager can steer the organization to achievement of
goals set or objectives.
• By understanding and implementing these four function ;
organizing, controlling and leading a manager can steer an
organization towards achievement.

• Through continuous learning and development managers
can adapt to evolving business techniques and inspire their
teams to reach new levels. This can be accomplished by
embracing,
• the core values and organizing efficiently, allocating
resources and responsibilities.
• Once a strategic plan is in place the next step is to organize

FUNCTIONS
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• What is necessary for employees to
complete tasks.
• Organizing involves identifying the
tasks required to achieve the goals
and allocating them to individuals or
teams within the organization.
• This process ensures that each person
knows their role. This is known as
staffing. It allows for efficient
resources allocation

• The prevention of duplicate work that would be time
consuming to fix. Effective organization requires managers
to consider factors such as the skills and strengths of
employees, the appropriate division of labor and the
establishment of clear reporting structures.
By effectively organizing resources and responsibilities, they
ensure

• That the necessary human capital and tools are in place to
help the business run efficiently.
• Functions allocating duties, grouping various activities,
establishing authority and allocating resources are
necessary to attain the specific plan.
• Organizing decides who will perform a particular task and
where and when it will be done.

• Organizing affects the grouping of the necessary tasks into
departments or work units so they can be managed well, so
that reporting is smooth, within the organization.
• The efficiency of operations and the effectiveness of results
can be addressed if there is a proper organizational
thehnique.
• The nature and type of organizational structure depends
upon the size and nature of the business.

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• For example, In Tony’s enterprise of
shoe production there are many duties
to be performed. Tony allocates the
duties within the organization forming
various groups to attain the plan. He
decides who will perform which task
as in accounts, sales, inventory control
so that reporting is easy and there is
easy control within the enterprise.
• Staffing:- refers to the process of
hiring and developing the

• The required staff to fill in various positions in the
organization.
• It is that part of the management process which is
concerned with recruitment, allocation and development of
human resources.
• It ensures that the organization has the right number and
right kind of people with the right qualification at the right
places at the right times and they are performing the right
thing.

• It is also known as the human resource function.
• For example, when Tony is hiring persons for his business
he will recruit different people for different tasks.
• He has to ensure he is hiring the right people with the right
qualification for the right job.
• He may also consider a human resource manager who will

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• Perform this task.
• Directing controlling
• The process of comparing actual work
results to predetermined benchmarks
to guarantee that the results are
according to expectation.

• Setting work performance standards is controlling company
actual performance to the set standards.
• Implementing corrective actions to address any variation is
considered controlling.
• Company actual performance to expected performance is
essential.

• Controlling involves:
• 1. establishing standards to measure performance
• 2. measuring actual performance
• 3. comparing performance with the standard
• 4. taking corrective action

is simply a set of steps a manager uses to determine whether
organizational goals have been met.
1. Establishing standards to measure performance:
2. This involves making decisions about the goals an
organization wants to focus on during a period of time.
They can be financial, customer satisfaction, production or

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• Employee performance.
• 2. Measuring actual performance:
• Involves creating measuring tools to
meet date. The tool should be able to
report on performance as it relates to
the standards set on measures
developed in the first step of the
controlling process.
• These tools can be a balance sheet,
sales reports, data collected

• From a customer satisfaction survey or even employee
performance appraisal.
• 3. Comparing performance involved company standard
actual performance to performance standards based on
data collected in the second step of the controlling process.
• Using the measuring tools created in the second step
managers

• Are able to compare current performance to the standards
set.
• A manager may want to compare sales performance from
last year to this year by comparing the actual sales from the
previous year to the sales of the current year.
• This comparison tells the manager whether the sales team
is below, meeting or exceeding goals. These are called
variances or differences between what was expected and
that actually occurred.

• 4. Taking corrective action:
• This involves determining whether changed need to be
made, what changes need to be made and devising a plan
for making changes.
• Managers will use comparisons to determine what needs to
be looked into for further investigation.
• If sales are lower than expected the manager will look at
various

Function of Management in Business Management

• things. For example, sales people, are not making as many
sales calls as they did last year - corrective action may be
taken against the employees for non-performance.
• A manager may look at their work. Maybe there are many
clients and not enough staff.
• Managers may have to hire more staff.
• The price of the product or service may be too high and it
may affect demand.

• Controlling consists of those activities that are undertaken
to ensure that the events do not deviate from the pre-
managed plans.
• The activities consist of establishing standards for work
performance, measuring performance and comparing it to
set standards and taking corrective action and when needed
to correct any deviations.

• In this case a manager may have to look at ways to add
value to a product or service or lower price.
• Direction:
• This is the function of management which is central to the
management process.

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• It refers to instructing, guiding and
overseeing the performance of the
staff, workers to achieve the
predetermined goals.
• Directing helps to create an
appropriate work environment that
facilitates efficient discharge of duties.
• Two types of directing
• 1. consultative directing
• Here the supervisors in the
organization consults decisions with

• With their coordinates or team members before
implementing.
• Free reign direction
• The educated and experienced subordinates make decisions
on their own.
• There should be a direction that must be taken to reach a
specific

• Goal.
• The directing factor of management is the process of
motivating, communicating, instructing, leading and
supervising employees in order to ensure that they are
working towards the accomplishment of organizational
goals.
• It is concerned with leadership, communication, motivation
and supervising that the employees perform their activities
in the most efficient manner possible in order to achieve
goals.

• Planning is future control and determines an organizational
way of making decisions today that will affect the future of
the business.
• It involves protecting of the future as well as attempting to
control the events .
• It involves the ability to foresee the effects of current actions
in the long run in the future.

• Activity
• Choose a business to manage and select two of the
management functions, giving an example of how you
would manage effectively.
• Name five management functions
• Which of the function involves human resource
• Which of the function compares current and past results.

Function of Management in Business Management

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