Functions of Management

1. To forecast and plan

Forecasting determines what is likely to be required form the organisation; opportunities and demands for its services or products, this information helps define the current set of prioritized objectives. Planning is the function of management that involves determining the best course of action for achieving the prioritised objectives of the organisation as defined and agreed by the executive and the governing body[1]. Planning requires managers to be aware of environmental conditions facing their organisation (constraints, resources, competition, etc), the capacity and capability of the organisation, and to forecast future conditions and trends.

There are many different types of plans and planning:

Strategic planning involves analysing competitive opportunities and threats, as well as the strengths and weaknesses of the organisation, and then determining how to position the organization to best achieve its objectives[2]. Strategic planning has a long time frame and is the link between governance and management with a shared responsibility to develop the ‘right strategy’ to ethically achieve the organisation’s objectives.
Tactical planning is intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan.
Operational planning is short-range planning that is designed to develop specific action steps that support the strategic and tactical plans.
Project and program planning is short to medium term focused on achieving the objectives the project or program has been created to deliver.

2. To organise

Organising involves developing an organisational structure (hierarchy, divisions, departments, etc) and allocating human and other resources to ensure the accomplishment of the organisation’s objectives and implementation of its strategic plan.

The structure of the organization is the framework within which effort is coordinated and is shaped bythe ethical and cultural requirements of the governing body. It involves the design of individual jobs within the organisation and striking a balance between the need for worker and management specialisation and the need for people to have jobs that entail variety and autonomy. Many jobs are now designed based on such principles as job enrichment and teamwork. The management framework needs to support the needs of the governance framework, and be accountable to the governing body for the actions and achievements of the organisation.

3. To command or direct subordinates

Providing direction and leadership to lower level managers and workers so that they are aware of their obligations and are willing to carry them out efficiently and effectively.

Leading[3] involves influencing others toward the attainment of organisational objectives. Effective leading requires the manager to motivate subordinates, communicate effectively, and use his/her power and authority[4] judiciously. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort toward the attainment of the objectives.

4. To coordinate

Coordination is inherent in the other aspects of management and is primarily focused on organization of the different elements of the organisation, or an activity, so as to enable them to work together effectively:

5. To control (French: contrôller)

A manager must receive feedback about a process in order to analyse any deviations from the plan and make necessary adjustments to correct negative deviations and preventfuture deviations[5]. Controlling consists of three basic steps, plus the requirement to provide assurance that the controlling process if functioning effectively:

Establishing the plan or required performance standards;
Comparing actual performance against the required standards at appropriate intervals, and
Taking corrective or preventative action when necessary.
Providing assurance to the organisation’s governing body that all levels of management and staff are held accountable for their actions and are performing and conforming to the organisations objectives and governing principles.

Inherent in all of these functions is decision making[6]! The primary role of management is to make decisions and value judgements within the framework set by the governing body, including the organisation’s ethical and cultural standards, to achieve the objectives set by the governing body. This required the delegation of appropriate levels of responsibility and authority to decision makers and the decision makers being prepared to accept this responsibility and be accountable for their actions.

The primary output from management can be defined as information and instructions that have to be communicated to others. The communication is firstly to the workers so they understand what has to be produced, where and when; secondly to the governing body to provide assurance that the right decisionshave been made and the right things are being produced in the right ways applying the organisation’s policy framework correctly.

[1] The governing body is defined as the person, group or entity accountable to the organisation’s owners, and the wider society, for the performance and conformance of the organisation.

[2] Strategic planning developed significantly through the 1950s and 60s. H. Igor Ansoff was one of the early authors focused on corporate strategy “Objectives are used as yardsticks for decisions on changes, deletions, and additions to product-market posture”.

[3] For more on leadership see: https://www.mosaicprojects.com.au/WhitePapers/WP1014_Leadership.pdf

[4] Management power and authority are discussed in WP1095 Understanding Power and Authority https://www.mosaicprojects.com.au/WhitePapers/WP1095_Understanding_Power_Authority.pdf

[5] For more on the functions of project controls see: https://www.mosaicprojects.com.au/WhitePapers/WP1093_Project_Controls.pdf

[6] For more on decision making see: https://www.mosaicprojects.com.au/WhitePapers/WP1053_Decision_Making.pdf

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