The Five Functions of Management

The Five Functions of Management:

 

 

 Fayol has defined five functions of management for its  component and these are still seen as relevant to organizations today. These five functions focus on the relationship between personnel and its management and they provide points of reference so that problems can be solved in a creative manner.

1. Planning

Planning is looking ahead. According to 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. Planning involves deciding where to take a company and selecting steps to get there. It first requires managers to be aware of challenges facing their businesses, and it then it requires managers to forecast future business and economic conditions. They then formulate objectives to reach by certain deadlines and decide on steps to reach them. They re-evaluate their plans as conditions change and make adjustments as necessary.

2. Organizing

An organization can only function well if it is well-organized. This means that there must be sufficient capital, staff and raw materials so that the organization can run smoothly and that it can build a good working structure.  The organizational structure with a good division of functions and tasks is of crucial importance. When the number of functions increases, the organization will expand both horizontally and vertically. This requires a different type of leadership. Organizing is an important function of the five functions of management.

3. Commanding

When given orders and clear working instructions, employees will know exactly what is required of them. Return from all employees will be optimized if they are given concrete instructions with respect to the activities that must be carried out by them. Successful managers have integrity, communicate clearly and base their decisions on regular audits. They are capable of motivating a team and encouraging employees to take initiative.

4. Coordinating

When all activities are harmonized, the organization will function better. Positive influencing of employees’ behavior is important in this. Coordination therefore aims at stimulating motivation and discipline within the group dynamics. This requires clear communication and good leadership. Only through positive employee behavior management can the intended objectives be achieved.

5. Controlling

Controlling involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits, but may also be stated in other terms, such as units produced, number of defective products, or levels of customer service. Instead, this function of management concerns the manager's role in taking necessary actions to ensure that the work-related activities of subordinates are consistent with and contributing toward the accomplishment of organizational and departmental objectives.

As one of the five functions of management, Fayol divided “organizing” into five subcategories. These five functions of management are still important in organizations today. The first of the five functions of management, Fayol mentioned was “specialization”; if every employee is allowed to use their individual skills this will be advantageous to their area of expertise. Secondly he mentioned “unity of command”, in which an employee is answerable to one manager only.  The “formal chain of communication” is linked to this so that the employee will know how and with whom they will have to communicate. The fourth category is “unity of direction”; all employees must be aware of the organization’s strategic objectives. The fifth category is “authority and responsibility” in which managers have the authority to give orders.