Management Functions
This article includes concepts like -
● Management
● Basic Functions of Management
● Luther Gulick’s POSDCORB
Management -
● Management is the administration of an organization, whether it be a business, a not-for-profit
organization, or government body
● Management in some way or another way is an integral part of our living and business
● Management as a concept exist in place in one form or another from ages
● However, modern management originates from the 16th century
● In general, management consists of the interlocking functions of creating corporate policy and
organizing, planning, controlling, and directing an organization's resources in order to achieve the
objectives of organizational goals
Basic Functions of Management
● Management is set of principles and related in terms of five basic functions. They are -
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
● In short, you can mimic as POSDC
P → planning
O → Organising
S → Staffing
D → Directing
C → Controlling
● POSDC is considered as basic management functions
Luther Gulick’s POSDCORB
● Later, Controlling function is broken down into further sub functions as coordination, reporting and
budgeting by Luther Halsey Gulick (1892–1993, was an American political scientist) and Lyndall
Urwick (1891-1983, British management consultant) in their 1937 paper on administrative
management theory.
● Luther Gulick popularised, approach of management as “Functions”
● And thus he coined a new word known as POSDCORB. The acronym stands for
P → Planning,
O → Organizing,
S → Staffing,
D → Directing,
CO → Coordinating,
R → Reporting,
B → Budgeting.
● Therefore, in total there are these seven functions of management
● However, Planning, Organizing, Staffing, Directing and Controlling are widely recognized functions of
management.
● Overall, these management principles sought for resources efficient usage and effectively to achieve
organizational goals.
● managing an organization means getting things done through organizational people to achieve its
objectives.
Let us know study each function in detail -
1. Planning -
● Planning is all about future forecast and future oriented
● Identifies the goals or objectives to be achieved
● It determines an organization’s direction towards goals
● While Planning, a Rational and systematic way of making decision approach is followed
● Involves an attempt to control the events of damage in future
● involves the ability to foresee the effects of current actions in the long run in the future for an
organisation
● An effective plan of organisation always undertakes planning activities for both external as well as
internal factors.
2. Organizing
● In management process, an organizing requires a formal structure of authority for proper the
direction and flow of actions
● Such authority that is established into group of human resources, departments, wok subdivisions
● Roles and Responsibilities are clearly defined and need of coordination of each other eliminates
conflicts of interest and so on.
● More to say, the functions of organizing is concerned with:
- Identifying the tasks that must be performed and grouping them whenever necessary
- Assigning these tasks to the personnel while defining their authority and responsibility.
- Delegating this authority to these employees
- Establishing a relationship between authority and responsibility
- Coordinating these activities
- Assigning these tasks to the personnel while defining their authority and responsibility
- Delegating this authority to these employees
- Establishing a relationship between authority and responsibility
- Coordinating these activities
3. Staffing
● Staffing is the function of hiring right personnel for organisational needs
● For both at managerial as well as non-managerial levels.
● It includes the process of -
→ Recruiting
→ Training
→ Developing
→ Compensation
→ Performance evaluation of employee
● To maintaining the proper work force organisation provide incentives as motivation factor
● For any organization to succeed, human element is the most vital factor
● Therefore, it is important to recruit the right personnel for right job
According to Luther Gulick, it is an act of “ all aspects of personnel management, from initial
recruitment to final retirement”
4. Directing
● The directing function is concerned with activities like -
→ Supervision
→ communication
→ motivation
→ leadership … etc
● This is so because to have the employees perform their activities in the most efficient manner
possible in order to achieve the desired goals.
● Decision making implementations
● Communication of orders to subordinates for implementing the policies already decided
● Directing is always a continuous activity of managers, supervisors and so on
5. Controlling
● This function undertakes such activities to ensure that events or tasks are performed as per already
agreed goals or as per organisational goals
● If any deviations or shortcomings are found, while on actioning the tasks of organizational goals then
a series of corrective actions are taken to rectify the concerns
● Controlling also involves in other activities like -
- set standard performance a work place
- measure the actual performance of employee on tasks
- compare the performance with predetermined standards
- corrective actions
● This is one of important activities of managers and supervisors, as any deviations in performance a
workplace, generally Supervisors along with employee are also held for accountable
● This function is a continuous activity
6. Reporting
● It is an functional activity of -
- Record Keeping
- Maintain Reports
- Perform Research
- Conduct Inspection
7. Budegting
● It is an functional activity of -
- Fiscal Planning
- Accounting
- Control
To Conclude, POSDCORB, serves as basis for all organisational needs, to have functions effectively and
efficiently
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