Question

Explain each of the following management functions and provide Three (3) examples for each function: planning, directing, and controlling. Explain why each management function is important for making business decisions for a company.

Answer 1

Management is an activity which consists of process which focuses of achieving the giving goal.No Business enterprise can achieve its goal until all the members of an enterprise work in an planned and integrated way.Thus,the process of management involves the determination of objective and putting them in action so that the given goal can be achieved.

Management is a continuing activity which has different functions which are Planning,organising,Directing and Controlling.Manager has to perform all these function to achieve the desired organisational functions.

Functions are as follows:

PLANNING

The first and the most importamt function of the management is planning. Planning includes setting targets ahead of time, an objective which is to be accomplished inside a specified time. The best alternative courses of action is then selected which will help the organization to achieve its objectives. All the other functions are dependent on Planning. All the organisation have to make a concrete plan before they start business or execute any project.

Importance

1.It makes optimum utilization of all resources.It helps to reduce wastage and suplication of work which increases efficiency.

2.It provides direction which means to give proper information, accurate instructions and guidance to the subordinates.

3.A good plan provides various benefits to employees which keep them motivated for work.

4.Planning helps in making good decisions in order to achieve the goal by choosing the best strategy.

Examples:-

1.To plan a budget for the economy growth.

2.A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the current sales.

3.The company may have a pricing policy within which objectives are set and decisions are made. If there is an established policy, it becomes easier to resolve problems or issues.

ORGANISING

After planning the next function of management is organising. Organising involves division of work
among people whose efforts must be coordinated to achieve specific objectives and to implement
pre-determined strategies. It is the backbone of management. After the objectives of an enterprise
are determined and the plan is prepared, the next step in the management process is to organize
the activities of the enterprise.

Importance-

1.It facilitates coordination and communication.

2.It is flexible and provides adequate scope for adoption of new technology.

3.Organising leads to the optimum use of all material, financial and human resources.

Examples:-

1.Preparing of accounts in organised way like sales account,revenue account,purchase account,etc

2.Keeping the records individually of all required employees in differemt department.

DIRECTING
Directing is concerned with the initiation of organized action and stimulating people to work. It involves issuance of orders, instructions them. Directing is the inter-personal aspect of management which deals directly with influencing, guiding, supervising and motivating the subordinates for the accomplishment of pre-determined objectives. Planning, organizing, staffing are merely preparations for doing the work but the work actually initiates through directing.

Importance

1.It initiates action that motivates people to convert the resources into useful outputs.

2.Personally satisfied employees contribute towards output and efficiency of the
organisation.

3.Directing aims at continuous supervision of activities which helps in achieving coordination.

Examples:-

1.Managers gives instructions to his subordinates to start the work in a given plan.

2.By giving them opportunities not only in their department but also in other departments which keep them motivated towards their given work.

CONTROLLING

Controlling compares the actual performance towards expected performance .All other functions of management cannot be completed effectively without performance of the control function. It implies measurement of accomplishment against the standards and correction of deviation, if any, to ensure achievement of organizational goals. The efficient system of control helps to predict deviation before they actually occur.

Importance

1.It helps in reducing the chances of mistakes being repeated in future by suggesting preventive steps.

2.It helps in taking a right decision as to what type of follow up action is to be taken.

3.Control helps in Coordination of the activities of various departments of the enterprise.
4. It also provides them unity of direction.

Examples:-

1.suppose yours expected sale is 200000 units in a month but the actual sale is 150000 units so the organisation needs to check their planning where they had made a mistake.

2.Providing employees a feedback form and ask them whether given task is completed on time or not.