Essay on Managerial Functions of an Organisation

Managerial Functions within the Organization
Dr. Radhika Kapur
Abstract
Management is an essential aspect within the economic life of the human beings,
which is an organised group activity. It is considered as the essential institution in the modern
social organization, noticeable by scientific thought and technical innovations and methods.
One or the other form of management is fundamental, wherever human efforts are to be
carried out co-operatively to satisfy the needs through some productive activity, occupation
or profession. It is the management that regulates the productive activities of the individuals
through the co-ordinated use of resources and materials. In order to manage any task,
function or an activity within the organization, it is essential to understand the managerial
functions of planning, organizing, directing, staffing, co-ordinating and controlling. There are
numerous organizations and to ensure that they are advancing towards welfare, productivity
and profitability, and to satisfy the needs and requirements of the individuals, the managerial
functions should be implemented effectually.
Keywords: Organization, Planning, Organizing, Directing, Staffing, Co-ordinating,
Controlling
Introduction
An organization develops in course of time with complications. With increasing
complications, management of the business has become a difficult task. The need of
existence of management has augmented and recognized. Management is indispensable not
only for business concerns but also for production companies, service companies, financial
institutions, banks, schools, colleges, training centres, hospitals, hotels, religious bodies,
charitable trusts and so forth. This is apparent that every business unit have different goals
and objectives. These objectives can be accomplished with the co-ordinated efforts of several
personnel. Management is regarded as an indispensable aspect of the economic life of man,
which is an organised group activity. It is considered as the essential institution in the modern
social organization, marked by scientific thought and technological modernizations. One or
the other forms of management is fundamental, wherever human efforts are to be assumed
co-operatively to satisfy wants through some productive activity, occupation or profession
(Pal, n.d.).

The managerial functions are planning, organizing, directing, staffing, co-ordinating
and controlling. Planning is the process of selecting and developing the best course of action
to achieve an objective. It is the keystone of all other management functions. Organizing
means, determining the tasks and functions, establishing the structures, distributing resources
and developing strategies and approaches. Directing is the function that involves taking
command, giving instructions and ensuring that tasks and functions are performed in an
adequate manner. Staffing is recruiting of employees in the right positions in accordance to
their educational qualifications, skills and experiences. Co-ordinating means maintaining
good relationships, unify efforts, promote mutual understanding and obtain concurrence.
Controlling is referred to as formal measurement and analysis of actions at established
checkpoints (Managing and Supervising Employees, n.d.). It is vital for the management to
obtain adequate understanding and skills regarding these managerial functions, to implement
them and achieve the desired goals and objectives.
Planning
Planning is the most important and the most prevalent of all management functions.
This function bridges the gap between where we are and where we want to be in future. The
tasks and functions that are required to bridge this gap is referred to as planning. If people
working in groups have to perform effectually, they should know in advance what is to be
done, what activities they have to perform in order to do what is to be done, and when it is to
be done. Planning is concerned with what, how, and when of performance. It is determining
in the present about the future objectives and the courses of action for their achievement. It
involves determination of the long and short range objectives; development of strategies and
courses of action to be followed for the achievement of these objectives and formulation of
policies, plans and rules for the implementation of strategies and procedures (Pal, n.d.).
The organizational objectives are established by the top management within the
framework of its basic purpose and mission, environmental factors, business forecasts, and
available and potential resources. These objectives are both long term as well as short term.
They are divided into divisional, departmental, sectional and individual objectives or goals.
This is followed by the development of strategies and courses of action to be followed at
various levels of management and in various segments of the organization. Policies,
procedures and rules make provision of the framework of decision making, and the method
and order for the making and implementation of these decisions. Every manager performs all
these planning functions, or contributes to their operation. In some organizations, particularly
those which are traditionally managed and are small, planning is done, but not in a systematic

way. The plans may be within the minds of the managers rather than unambiguously and
precisely stated, they may be vague but are always present. Planning is the most basic
function of management. It is performed in all kinds of organizations by the managers at all
levels in the hierarchy (Pal, n.d.).
Planning ensures that work is implemented effectively and efficiently or leads to
improvements in the performance of the individuals. It causes a reduction in procrastination,
ensures continuity and provides for the intelligent use of resources. It improves the chances
of the individuals in carrying out tasks and resulting in satisfaction of having everything
under control and being aware of what will be the next step. Planning is proactive and
decreases the need to manage from various crisis situations. It is a prerequisite for all the
necessary managerial functions, including teaching and mentoring, preparing for and
organising committee and staff meetings, carry out performance appraisal discussions,
employment interviews, preparation of budgets and numerous other factors. In case of
occurrence of losses, due to natural calamities and disasters, planning of activities is
considered essential. The individuals, who are carrying out the functions of planning need to
make sure that there are not any barriers and impediments within the course of carrying out of
job duties (Chapter 3, 2013).
Plans are classified into seven types, strategic, tactical, organizational, physical,
functional, operational and financial. Strategic plans are made for achieving long term goals
and living up to the expectations, expressed in the statement of mission and values. Tactical
plans translate wide-ranging strategies into precise objectives and action plans.
Organizational plans begin with the table of organizations. They include position
descriptions, staffing and channels of communication. Physical plans are regarding the
typography, site of the building, layout of the office, or the location of diagnostic or the
therapeutic equipment. Functional plans are concerned with the workings of major functional
units, such as, nursing service, clinical laboratory, human resources department, financial and
clinical services and others. Operational plans are concerned with the systems, work
processes, procedures, methods, quality control, safety and other supportive activities.
Financial plans assist in the inflow and outflow of money, preparation of budgets, profit and
loss, cost and profit centres, charges and salaries. Career planning, time management and
daily work planning are also the forms of planning (Chapter 3, 2013).
The key elements of planning are vision, mission, goals, objectives, strategy and
action. An organization’s vision statement should be clear, stimulating and should create a
wide scope for the pursuit of new opportunities. The vision of top management in the

hierarchy should be wide ranging, so that the vision of subordinates fits within it. An
effective mission statement must be expressed clearly in a single and brief paragraph and in a
language that everyone can understand. When workers participate actively in the organization
of mission statements, then they are able to understand what the purpose of the organization
is and what their work is all about. Goals are featured by specific ends or conclusions. Most
of the employees prefer activities leading to conclusions. The workforce usually prefer to
work on projects, because they have clear objectives rather than getting involved in routine
work. The characteristics of the goals should be scrutinized by the individuals, they should be
realistic, understandable, measurable, behavioural, achievable and specific (Chapter 3, 2013).
Objectives should be formulated in a precise manner, so that the employers and the
employees are well acquainted and they also dedicate their work duties in an appropriate
manner towards their achievement. The main purpose of job duties and all the tasks and
operations, carried out within the organization should be devoted towards the achievement of
the desired outcome. In the performance of various jobs and functions within the
organization, it is important for the individuals to understand the strategies and the
approaches. The reason being, when a particular service or a product is promoted, there are
certain procedures that need to be put into operation. It is vital to encourage all employees at
all levels to participate in the planning and execution of new and improved services and in
solving customer problems. Promoting customer satisfaction is one of the goals of the
organization that is of utmost significance and in production and service organizations, this is
considered as the primary objective (Chapter 3, 2013).
Organizing
Organizing involves identification of the activities, required for the achievement of
the objectives of the enterprise and implementation of plans, grouping of activities into jobs,
assignment of jobs and activities into the departments of the individuals, delegation of
responsibility and authority for performance and provision of vertical and horizontal co-
ordination of activities. There are number of departments within the organization and every
department has a manager, who has to decide on how to put into practice the activities that
are needed to achieve the desired objectives. Grouping of identical and similar activities is
required to make jobs, assign jobs or groups of activities to his subordinates, delegate
authority to them, so as to enable them to make decisions and initiate action for undertaking
these activities, and provide co-ordination between himself and his subordinates and amongst
other subordinates. When grouping of identical and similar activities is done, then it is
beneficial in minimizing the tasks and making them less time consuming (Pal, n.d.).