Question

What are the four key functions of management? And what role do these functions play in a firm's profitability,sustainance and success?

Answer 1

The four key functions of management are:

• Planning
• Organizing
• Leading
• Controlling

Role of the functions play in firm's profitability, sustainance and success:

Planning:

• Planning is the base or foundation of a business for its success.
• Planning is understanding the present position of a firm and deciding the steps to be taken to reach the desired goals in the future.
• Plans are evaluated and changed to sustain and get wanted success by analyzing the progress of the plan.
• Planning helps reduce waste and utilize resources properly to increase profitability.

Organizing:

• Organizing is bringing all physical, financial and human resources together to achieve a goal.
• Organizing identifies the activities and tasks to be performed, divides the work into groups or individuals, assigns responsibility and delegates authority.
• Employees and managers coordinate the responsibility and authority in the interests of the projects to see that the project is sustainable and succeed.

Leading:

• Leaders are the people in management roles who motivate and inspire employees to achieve business goals.
• Leading gives authority to take important decisions as well as opportunity to communicate effectively.
• Leaders are influencers who influence people to work for success.
• Leadership team gives insights and perspectives on employees work to sustain and achieve good results.

Controlling:

• Controlling is the function that measures the progress against goals established.
• It identifies and analysis any sources of deviation from the accomplishment and provides a corrective action plan.
• Controlling also takes care of employee accountability so that they contribute to the success of the firm.