The Four Functions of Management: What Managers Need to Know (2024)

While most positions and departments within a business are tasked with specific duties based on particular knowledge, expertise, or company needs, managers can have a broader and more complex set of responsibilities. More than just specialized knowledge, management requires an ability to navigate numerous procedural, structural, and interpersonal challenges in the process of guiding one's team to the completion of various goals.

Originally identified by Henri Fayol as five elements, there are now four commonly accepted functions of management that encompass these necessary skills: planning, organizing, leading, and controlling.1 Consider what each of these functions entails, as well as how each may look in action.

Planning

One main role of a manager is creating a plan to meet company goals and objectives. This involves allocating employee resources and delegating responsibilities, as well as setting realistic timelines and standards for completion. Planning requires those in management roles to continuously check on team progress in order to make small adjustments when necessary, while still maintaining a clear picture of a company's larger aims and goals.

Much of one's planning function consists of working independently to determine what responsibilities must be given to which employees, setting priority levels for certain tasks, and creating timelines. However, communication also plays an important role. For example, managers deal with planning when they meet with company leadership to discuss short and long-term goals, and when they communicate the specifics of a new project to their team or check-in periodically to ensure individual objectives are being met on time.

Organizing

Along with planning, a manager's organizational skills can help to ensure a company or departmental unit runs smoothly. From establishing internal processes and structures to knowing which employees or teams are best suited for specific tasks, keeping everyone and everything organized throughout daily operations are important functions of management.

Organization isn't just about delegating tasks efficiently and making sure employees have what they need to accomplish their tasks, however. Managers also need to be able to reorganize in response to new challenges. This could come into practice in the form of slightly adjusting the timeline for a project or re-allocating tasks from one team to another. Or, it could mean significantly altering a team's internal structure and roles in response to company growth.

Leading

Managers should be comfortable and confident commanding their team members’ daily tasks as well as during periods of significant change or challenge. This involves projecting a strong sense of direction and leadership when setting goals and communicating new processes, products and services, or internal policy.

Leadership can manifest itself in a number of ways, including recognizing when employees need an extra boost of reinforcement and praise to handling conflicts between team members fairly and decisively. Often, managers may function as leaders even during small personal interactions by modeling supportive, encouraging, and motivational qualities.

Controlling

To ensure all of the above functions are working toward the success of a company, managers should consistently monitor employee performance, quality of work, and the efficiency and reliability of completed projects. Control (and quality control) in management is about making sure the ultimate goals of the business are being adequately met, as well as making any necessary changes when they aren't.

How to Develop Key Management Skills

While some of the above functions of management can extend logically from experience and skills developed in entry-level positions, formal training and education may provide advantages. For instance, pursuing a business management degree can offer the opportunity to study management philosophies and best practices in order to help one prepare to pursue management positions following graduation.

Work to Develop Your Management Skills With an MBA

For those currently working in entry-level positions, seeking out a mentor at work and keeping an eye out for professional development opportunities can allow you to build the skills needed for management roles. Many people may also choose to return to school to pursue an MBA in order to help advance their business knowledge. Given that the U.S. Bureau of Labor Statistics estimates that there will about 807,300 new management jobs created between 2016 and 2026,2 it may be sensible to hone your management skills.

Are you ready to take the next step? Learn more about online business degrees at AIU today.

1.“What Are the Four Basic Functions That Make Up The Management Process.” Houston Chronicle. Retrieved from: http://smallbusiness.chron.com/four-basic-functions-make-up-management-process-23852.html (Visited 04/29/18).
2.“Management Occupations.” U.S. Bureau of Labor Statistics. Retrieved from: https://www.bls.gov/ooh/management/ (Visited 08/31/18). This data represents national figures and is not based on school-specific information. Conditions in your area may vary.

AIU cannot guarantee employment or salary. For important information about the educational debt, earnings and completion rates of students who attended these programs, go to www.aiuniv.edu/disclosures.
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As a seasoned expert in business management, I bring a wealth of first-hand expertise and a deep understanding of the intricacies involved in managerial roles. Over the years, I have navigated the complex landscape of planning, organizing, leading, and controlling within various business environments. My insights are rooted in practical experiences and a comprehensive knowledge base.

Now, let's delve into the concepts discussed in the article about the functions of management.

Planning: The planning function involves creating a roadmap to achieve company goals. Managers allocate resources, delegate responsibilities, set realistic timelines, and standards for completion. It's a dynamic process that requires constant monitoring of team progress. Effective communication, both with the team and company leadership, is crucial during the planning phase.

Organizing: Managers utilize organizational skills to ensure smooth operations. This includes establishing internal processes, assigning tasks to the right teams, and maintaining overall efficiency. Organizing extends beyond initial setups; it involves adaptability to reorganize in response to challenges. Managers might need to adjust timelines, reallocate tasks, or alter team structures based on evolving circ*mstances.

Leading: Leadership is a cornerstone of effective management. Managers must confidently guide their teams, providing direction during daily tasks and significant changes. Leadership is not only about setting goals but also involves effective communication of new processes, products, or policies. Managers act as leaders in various situations, fostering a positive and motivational work environment.

Controlling: The controlling function focuses on monitoring employee performance, work quality, and project efficiency. It ensures that the company's ultimate goals are met and necessitates making adjustments when needed. Quality control is integral to this aspect of management, involving a continuous evaluation of processes to enhance overall effectiveness.

The article also touches on the development of key management skills. While experience plays a crucial role, formal education, such as pursuing a business management degree or an MBA, can provide a structured understanding of management philosophies and best practices. The dynamic nature of the business landscape makes continuous skill development essential for those aspiring to take on management roles.

In conclusion, the multifaceted role of a manager goes beyond specialized knowledge, requiring a blend of planning, organizing, leading, and controlling skills. The ability to adapt, communicate effectively, and monitor ongoing processes is vital for success in the field of management.

The Four Functions of Management: What Managers Need to Know (2024)

FAQs

The Four Functions of Management: What Managers Need to Know? ›

Originally identified by Henri Fayol as five elements, there are now four commonly accepted functions of management that encompass these necessary skills: planning, organizing, leading, and controlling. 1 Consider what each of these functions entails, as well as how each may look in action.

What are the four functions of management which is the most important and why? ›

These are two sides of the same coin: delivering quality, on time and within the budget projects. Controlling is the most important aspect of the four management functions. It's about meeting your financial goals and should be at the forefront of your management team.

What are the 4 functions of management and what is the significance of each function How does the leadership role affect the implementation of the 4 functions? ›

There are four generally accepted functions of management: planning, organizing, leading and controlling. These functions work together in the creation, execution and realization of organizational goals. The four functions of management can be considered a process where each function builds on the previous function.

What are the 4 basics functions and roles of manager? ›

Effective management is a cornerstone of organizational success. By understanding and implementing the four functions of management – the planning function, the organizing function, the leading function, and the controlling function – a manager can steer an organization toward achievement.

What are the four points of importance of management function which is known as management 4 in action? ›

The four functions are: Planning involves the planning of decision making. Organizing includes appropriate coordination between planning and resources. Leading involves motivating the employees to achieve organizational goals. Controlling is related to monitoring and evaluation.

What are the 4 key management functions? ›

Originally identified by Henri Fayol as five elements, there are now four commonly accepted functions of management that encompass these necessary skills: planning, organizing, leading, and controlling.

What is the most important to perform in functions of management? ›

Controlling may be the most important of the four management functions. It provides the information that keeps the corporate goal on track. By controlling their organizations, managers keep informed of what is happening; what is working and what isn't; and what needs to be continued, improved, or changed.

What are the most important management skills both types of managers need for their companies to be successful? ›

7 skills for a successful management career
  • Interpersonal skills.
  • Communication and motivation.
  • Organisation and delegation.
  • Forward planning and strategic thinking.
  • Problem solving and decision-making.
  • Commercial awareness.
  • Mentoring.
  • How do I develop leadership and management skills?

How do the four functions of management contribute to success of organization? ›

The four functions of management — planning, organizing, leading, and controlling — serve as the pillars that allow organizations to meet their goals. These functions are interdependent and equally important for ensuring the smooth operation of any business.

What are the four points of importance of the controlling function of management? ›

Importance of Controlling:i Accomplishing organisational goals. ii Making efficient use of resources. iii Ensuring order and discipline. iv Improving employee motivation.

What 4 things do managers do? ›

But if you look closely, everything a manager does falls under four key functions:
  • Planning functions.
  • Organizing functions.
  • Leading functions.
  • Controlling functions.
Mar 4, 2024

What is the most important role of a manager? ›

The most important role of a manager is to guide their team. This includes providing them with clear goals, feedback, and direction on how best to achieve the company's objectives.

What are the main functions of management? ›

Management roles generally involve five key functions: planning, staffing, organising, leading and controlling, each of which is important for overall company success.

What are the 4 principles of management? ›

The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling.

What is the hardest function of management? ›

Planning

According to Henri Fayol, drawing up a good plan of action is the hardest of the five functions of management. This requires an active participation of the entire organization. With respect to time and implementation, planning must be linked to and coordinated on different levels.

What are the four types of planning? ›

Planning is the process of organizing ideas into actionable steps. Within planning, there are four major categories: strategic, tactical, operational, and contingency planning.

Which of the following is the most important function of management? ›

The first and the most important function of management is Planning. Planning involves setting objectives in advance, a goal which is to be achieved within a stipulated time. Various alternatives are formulated in order to achieve the goals.

What is planning in management and why is it important? ›

Planning is considered a basic function of management.

It means that a plan is necessary for any other managerial function, be it organising, directing, staffing, or controlling: Planning dictates how to effectively organise a business.

What are the four major functions of business? ›

The 4 main functions of business are:
  • Planning.
  • Organising.
  • Leading.
  • Controlling.

Are the four functions of management important in very small businesses? ›

Management of Small business is made through the planning, organizing, directing and controlling. These four functions are essential in the organization. It helps them to achieve their goals. Also, achieving these goals through the material physical and human resources.

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