Management Concepts - The Four Functions of Management

Any organization, whether new or old, whether small or big, needs to run smoothly and achieve the goals and objectives, which it has set forth for itself. For this to happen, they must develop and implement their own management concepts. There are basically four management concepts that allow any organization to take control of its destiny. These four concepts of management, translated into functions lead to the creation of a cohesive organization, which smoothly achieves its objectives. The four functions of management are:

The base function is to: Plan
It is the foundation pillar of management. It is the base upon which the all other areas of management are built. Planning requires administration to assess where the company presently is and where it would be in the upcoming years. From there, an appropriate course of action is determined and implemented to attain the company's goals and objectives.

Planning is an unending course of action. There may be sudden strategies, required to be implemented, when facing a crisis. There are external factors that constantly affect a company, both positively and negatively. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation or arrangement is known as strategic planning. In strategic planning, management analyzes internal and external factors, that may affect the company, its objectives and goals. Here they should engage in a study of strengths, weaknesses, opportunities and threats (SWOT analysis). For management to do this efficiently, it has to be very practical and focused.

The subsequent function is to: Organize
The second function of the management is getting prepared and getting organized. Management must organize all its resources beforehand, to put into practice, the course of action, which has been decided upon in the base function of planning. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships and also assign required resources.

While determining the inside directorial configuration, management ought to look at the different divisions or departments. They must also ensure the harmonization of staff, and try to find out the best way to handle the important tasks and reduce unnecessary expenditure within the company. Management determines the division of work according to its need. It also has to decide for suitable departments to hand over authority and responsibilities.

The third function is to: Lead/Direct
Directing or leading is the third function of management. Working under this function helps the management in controlling and supervising the actions of staff. This helps them in assisting the staff, to achieve the company's goals and also accomplish their personal or career goals, which can be powered by motivation, communication, department dynamics, and department leadership.

The employees who are highly encouraged and motivated, generally surpass expectations in their job performance and also play an important role in achieving the company's goal. This is the reason why managers focus on motivating their employees. Managers come up with prize and incentive programs, based on job performance and tend to be geared to meet employee requirements.

It is very important to maintain a productive working environment, build positive interpersonal relationships and engage in problem solving. This can only be done effectively, with proper communication. Understanding the communication process and working on areas that need improvement, helps managers become more effective communicators. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals, how well they are doing. Such introspection leads to better relationships and helps the managers in directing plans.

The final function is to: Control
Control - the last of four functions of management, includes establishing performance standards, which are aligned to the company's objectives. It also involves evaluation and reporting of actual job performance. When these points are studied by the management, it is necessary to compare both these things. This study or comparison leads to further corrective and preventive actions.

In an effort to solve performance problems, management should set high standards. They should clearly speak to the employee or department which has a problem. On the contrary, if there are inadequate resources or other external factors, which prevent high standards from being attained, management has to lower their standards as per requirement. The controlling processes, in comparison with other three, is a continuous process. With this function, management can anticipate any future problems. It helps them in taking necessary preventive measures, against the consequences. Management can also recognize any further developing problems that need corrective actions.

Effective and efficient management leads to success, which is the attainment of objectives and goals, that an organization sets for itself. Of course, for achieving the ultimate goal, management needs to work creatively in problem solving and execute all the four functions. Management not only has to see goals accomplished, but also see to it that the strategy adopted is feasible for the company.