The 4 Basic Functions of Management
No matter the type of company, all managers share four core responsibilities:
planning, organizing, leading, and controlling. These functions work together in the
creation, execution, and realization of organizational goals. The four management
functions can be considered a process in which each builds on the previous function.
To be successful in their roles, managers should follow the four basic functions of
management in the proper order. First, they need to develop a plan, organize their
resources, and delegate responsibilities to employees according to the plan. Then, they
must lead others to carry out the plan efficiently. Finally, they must evaluate the plan's
effectiveness as it is being executed and make any necessary adjustments.
1. Planning
In the planning stage, managers establish organizational goals and create a course of
action to achieve them. During the planning phase, management makes strategic
decisions to set a direction for the organization. Managers can brainstorm alternatives
to achieve the objective before choosing the best course of action. While planning,
managers typically conduct an in-depth analysis of the organization’s current state of
affairs, considering its vision and mission and evaluating the resources available to
meet organizational objectives. While planning, managers evaluate internal and
external factors that may affect the execution of the plan, such as economic growth,
customers, and competitors. They also establish a realistic timeline for achieving the
goal or goals based on the organization’s available finances, personnel, and resources.
Managers may take additional steps, such as seeking approval from other
departments, executives, or their board of directors before proceeding with the plan.
There are several approaches to planning:
Strategic planning: This type of planning is often carried out by an organization’s top
management and usually creates goals for the entire organization. It analyzes threats
to the organization, evaluates its strengths and weaknesses, and creates a plan for how
it can best compete in its environment. Strategic planning often has a long timeframe
of three years or more.
Tactical planning: This type of planning is the shorter-term planning of an objective
that will take a year or less to achieve. Tactical planning is often carried out by an
organization’s middle management and aimed at a specific area or department of the
organization, such as its facilities, production, finance, marketing, or personnel.
Operational planning: Operational planning involves using tactical planning to
achieve strategic planning and goals. It creates a timeframe for implementing a
portion of the strategic goal operationally.
2. Organizing
The purpose of the organizing step of the four basic functions of management is to
allocate resources and assign tasks to personnel to achieve the goals set during the
planning stage. Managers often must collaborate with other departments, such as
finance and human resources, to manage budgets and staff effectively. During the
organizing phase, managers aim to create a productive work environment by aligning
employees' roles with their skills and motivation. Managers should clearly explain
each employee’s responsibilities when assigning tasks and ensure they understand
their roles. To enhance engagement and productivity, managers should balance the
workload and provide sufficient time for employees to complete their tasks. Here are
some examples of the organizing function:
If the company’s brand manager works part-time and the organization’s goal is to
launch a new advertising campaign for a product, the brand manager may not take on
the significant responsibility of managing the campaign besides their regular duties.
The company may hire an advertising agency to help promote the product.
If a company’s sales in a geographic area have grown exponentially, management
may plan to split the territory in two and need to divide the current team working in
the territory and hire additional staff members as required.
3. Leading
Leading consists of motivating employees and influencing their behavior to achieve
organizational objectives. It focuses on managing people, such as individual
employees, teams, and groups, rather than tasks. Though managers may direct team
members by giving orders and directing them to their team, successful leaders usually
connect with their employees by using interpersonal skills to encourage, inspire, and
motivate team members to perform to the best of their abilities. Managers can foster a
positive working environment by identifying moments when employees need
encouragement or direction and using positive reinforcement to praise employees
when they have done their jobs well. Managers usually incorporate different
leadership styles and change their management style to adapt to various situations.
Examples of situational leadership styles include:
Directing: The manager leads by deciding with little input from the employee. This is
an effective leadership style for new employees who need a lot of initial direction and
training.
Coaching: The manager is more receptive to input from employees. They may pitch
their ideas to employees to work cooperatively and build trust with team members.
This leadership style is effective for individuals who need managerial support to
develop their skills further.
Supporting: The manager decides with team members but focuses more on building
relationships within the team. This leadership style is effective for employees with
fully developed skills but sometimes inconsistent in their performance.
Delegating: The leader provides minimal guidance to employees and is more
concerned with the project's vision than day-to-day operations. This leadership style is
effective when employees can work and perform tasks on their own with little
guidance. The leader can focus more on high-level goals than on tasks.
4. Controlling
Controlling is the process of evaluating the execution of the plan and making
adjustments to ensure that the organizational goal is achieved. During the controlling
stage, managers perform tasks such as training employees as necessary and managing
deadlines. Managers monitor employees and evaluate the quality of their work. They
can conduct performance appraisals and give employees feedback, providing positive
remarks on what they are doing well and suggestions for improvement. They may also
offer pay raise incentives to high-performing employees. Managers may need to make
adjustments such as:
Budget adjustments: Managers oversee the budget and resources to ensure they are
used efficiently and within financial limits. For instance, if a manager notices that a
project is exceeding its budget but is unsure of the cause, she must investigate
whether the overspending is due to a general issue or if a specific department is
responsible. Once the source of the overspending is identified, the manager needs to
take corrective action to reduce expenditures and make necessary adjustments to
balance the budget.
Staffing adjustments: Managers may need to make challenging decisions such as
whether to reassign an employee who produces low-quality work to a different task or
dismiss them from a project. They may also need to add additional team members to
meet an organizational goal if they conclude that the team is understaffed. If this is the
case, they may also need to consult with organization executives to secure more
funding.
What is a leadership style?
A leadership style refers to a leader’s methods, characteristics, and behaviors when
directing, motivating, and managing their teams. A leader’s style is shaped by a
variety of factors, including personality, values, skills, and experiences, and can have
a significant impact on the effectiveness of their leadership.
Understanding your leadership style is crucial because it influences every aspect of
how you lead – from daily interactions with team members to high-stakes decision-
making moments. Research consistently shows that leaders who are self-aware about
their style and can articulate their approach are more effective at building trust,
driving performance, and creating positive organizational cultures.
A leadership style also determines how leaders develop their strategy, implement
plans, and respond to changes while managing stakeholders’ expectations and their
team’s well-being. It affects how you communicate expectations, provide feedback,
handle conflicts, and inspire others to achieve shared goals. Your leadership style also
influences how you delegate responsibilities, make decisions under pressure, and
adapt to different team dynamics and organizational contexts.
In many cases, leaders will express a wide range of leadership styles – and will likely
adapt this dependent on their situation. However, a leader will often have one pre-
eminent style that they tend to express more often; this is known as their natural
leadership style.
The most effective leaders develop what researchers call “leadership agility” – the
ability to recognize when their natural style may not be the best fit for a particular
situation and consciously shift their approach. This flexibility allows them to meet
their team’s needs while staying authentic to their core leadership values.
The key is not finding the “perfect” leadership style, but rather understanding your
natural tendencies, recognizing their strengths and limitations, and developing the
skills to adapt when circumstances require a different approach.
Why is it important to know your own leadership style?
As a leader, understanding your leadership style is a crucial component of your
success as a leader. When you understand your own leadership style, you can
determine how this affects those you directly influence. It also helps you find your
leadership strengths and define which leadership skills you need to develop.
Some leaders can already categorize their current leadership style, recognizing
whether this makes them effective, or how their employees see them. But it is not
always so defined. It is usually the case that leaders can categorize their style;
however, they often exhibit traits of many other leadership styles.
Detailed feedback is one easy way to know your leadership style. Asking those you
lead to provide you with open and honest feedback is a helpful exercise. Doing so will
allow you to adapt your style’s characteristics within your day-to-day responsibilities
as a leader.
The way you lead shapes the way others perform. Unlock the behaviors, mindset, and
clarity that create high-performing, engaged teams.
1. Transformational Leadership
We’ve likely all been in a group situation where someone took control,
communicating with the group and creating a shared vision. Creating unity,
developing bonds, creating energy, and instilling passion. This person is very likely to
be considered a transformational leader.
Transformational leadership is a leadership style that emphasizes change and
transformation. Leaders who adopt this approach strive to inspire their followers to
achieve more than they ever thought possible by tapping into their potential. This type
of leadership can be highly effective in organizations looking to make significant
changes or transformations.
Some of the key characteristics of transformational leadership include:
A focus on the future: Transformational leaders always look ahead and think about
what needs to be done to achieve the organization’s goals. They inspire their
followers to do the same.
A focus on change: Transformational leaders are comfortable with change and
understand it is necessary for organizational success. They work to ensure their
followers are comfortable with change and can adapt to it.
A focus on people: Transformational leaders see the potential in every one of their
followers. They strive to develop their followers’ individual strengths and abilities so
that they can reach their full potential.
2. Delegative Leadership
Often referred to as “laissez-faire,” a delegative leadership style focuses on delegating
initiative to team members. This is generally known as one of the least intrusive forms
of leadership; this translates to “let them do.” This is therefore considered a very
hands-off leadership style.
Leaders who adopt this style have trust and rely on their employees to do their jobs.
They don’t micromanage or get too involved in providing feedback or guidance.
Instead, delegative leaders allow employees to utilize their creativity, resources, and
experience to help them meet their goals.
This can be a successful leadership strategy if team members are competent and take
responsibility for their work. However, delegative leadership can also lead to
disagreements among team members and may split or divide a group.
It can be challenging for newcomers to adapt to this style of leadership or staff
members to develop an understanding of who is ultimately in charge and responsible
for outcomes. Therefore, this leadership style must be kept in check.
3. Authoritative Leadership
Authoritative leaders are often referred to as visionary. Leaders who adopt this style
consider themselves mentors to their followers. Not to be confused with authoritarian
leadership, authoritative leadership emphasizes a “follow me” approach. This way,
leaders chart a course and encourage those around them to follow.
Leaders who display authoritative traits tend to motivate and inspire those around
them. They provide overall direction and provide their teams with guidance, feedback,
and motivation. This promotes a sense of accomplishment or achievement.
The authoritative leadership style relies heavily on getting to know each team
member. This allows a leader to provide guidance and feedback on a more
personalized level, helping individuals to succeed. This means authoritative leaders
need to be able to adapt, particularly as the size of their team grows.
Authoritative leadership is very hands-on, but leaders must be cautious not to
micromanage. This is a tendency with this style, which can be overbearing for team
members and create negative sentiments.
4. Transactional Leadership
Transactional leadership, often referred to as managerial leadership, is a leadership
style that relies on rewards and punishments. This leadership style clearly emphasizes
structure, assuming individuals may not possess the motivation needed to complete
their tasks.
With this reward-based system, a leader sets clear team goals or tasks. Leaders also
clarify how their teams will be rewarded (or punished) for their work. Rewards can
take many formats but typically involve financial recompenses, such as pay or a
bonus.
This “give and take” leadership style is more concerned with efficiently following
established routines and procedures than making transformational organizational
changes.
Transactional leadership establishes roles and responsibilities for each employee.
However, it can lead to diminishing returns if employees are always aware of how
much their effort is worth. Therefore, incentives must be consistent with company
goals and supported by additional gestures of appreciation.
5. Participative Leadership
Sometimes referred to as democratic leadership, participative leadership is a
leadership style that encourages leaders to listen to their employees and involve them
in the decision-making process. This leadership style requires leaders to be inclusive,
utilize good communication skills, and, crucially, be able to share
power/responsibility.
When a leader adopts a participative leadership style, this encourages collaboration
through accountability. This often leads to a collective effort of a team to identify
problems and develop solutions instead of assigning individual blame.
This leadership style has historically been prevalent and utilized by many leaders in
many organizations. However, as working habits have changed (accelerated by the
COVID-19 pandemic) and teams have become more decentralized, this leadership
style is more complicated.
Spontaneous, open, and candid communication is often associated with a participative
leadership style. Remote working or virtual teams can make this particularly
challenging to maintain.
Participative leadership is often favored as it helps to build trust with employees.
Empowering them and encouraging them to share their ideas on essential matters,
demonstrating their value to a team.
6. Servant Leadership
Servant leadership is a leadership style that puts the needs of others first. It
emphasizes creating strong relationships with those around you and focuses on
enabling them to reach their full potential. As a leader, it requires focusing on
understanding the people you are working with and developing their abilities, while
also setting a good example and understanding their personal goals.
At its core, servant leadership is about ethical decision-making; if one follows this
model, they will be more likely to make decisions based on what is right for everyone
involved, rather than just benefiting a select few. This approach fosters an
environment where creativity and problem-solving thrive as team members feel
empowered to suggest new solutions and build upon each other’s ideas.
Furthermore, following the principles of servant leadership can result in improved
communication between all involved parties – from senior management to front-line
employees. By taking into account the opinions of subordinates, leaders can prevent
any potential conflicts while maintaining both healthy relationships and peaceful work
environments. Ultimately, these qualities help create a stronger sense of loyalty
amongst team members which consequently leads to increased productivity overall.
Tips for finding your leadership style
Self-awareness drives leadership effectiveness. Start by honestly assessing how your
current approach impacts your team’s performance and morale. Since most leaders
blend multiple styles rather than fitting neatly into one category, focus on identifying
your dominant tendencies and situational adaptations.
Actively seek feedback from your team members, peers, and supervisors to gain
external perspectives on your leadership approach. This input often reveals blind spots
and helps you understand the gap between your intended impact and actual effect.
Consider using structured feedback tools like 360-degree reviews or regular one-on-
one conversations where you specifically ask about your leadership effectiveness.
Remember that understanding your leadership style is just the starting point. Use
these insights to deliberately strengthen your natural leadership strengths while
developing skills in areas where you may be less effective. The most successful
leaders remain flexible, adapting their approach based on their team’s needs,
organizational context, and specific situations they encounter.
