Important functions of management are:

(1) Planning:
It refers to thinking beforehand. In other words, planning is the determination of a future course of action to achieve a
desired result. Under planning, it is ascertained that what should be done, how it should be done and who should do it.
If before the commencement of a job all these points are not contemplated then the objective of a business cannot be
achieved.
Planning is a long process, for the consummation of which following steps are taken:
(i) Setting objectives (ii) Developing premises (iii) Identifying alternative courses of action (iv) Evaluating alternative
courses (v) Selecting an alternative (vi) Implementing the plan (vii) Follow-up action
(2) Organising:
It refers to harmonious adjustment of various parts to achieve common objectives. In order to make the first function of
management (i.e., planning) functional, a structure of roles needs to be framed and sustained.
The process of creating this structure of roles is known as organising. Planning is just to put some idea in writing, but to
convert that idea into reality, a group of people is needed.
Further, to streamline the activities of this group of people, organising is required. Under this, the whole project is
divided into various small jobs, to assign these jobs to designated posts (which will clarify that a particular job will be
performed at which post), to unite various jobs into one department, to clarify the rights and duties of employees to be
appointed at various posts, and to define relationship among various posts (employees).
Following steps are taken to complete the organising function of management:
(i) Identification and Division of Work (ii) Departmentalization (iii) Assignment of Duties (iv) Establishing Reporting
Relations
(3) Staffing:
It refers to filling and keeping filled the post with people. In planning, ideas are given a written shape, on the other hand
organising, with the objective of converting these ideas into reality, prepares a structure of various posts.
After organising comes staffing which deploys people on these posts so that jobs can be performed. In view of the fact
that the success of an organisation is commensurate with how adroitly every employee performs his job, the importance
of staffing function increases even more.
Following steps are taken to complete the staffing function of management:
(i) Estimating the manpower requirements

(ii) Recruitment
(iii) Selection
(iv) Placement and Orientation
(v) Training and Development
(4) Directing:
It refers to instructing, guiding, communicating and inspiring people in the organisation. Under directing following four
activities are included:
(i) Supervision (ii) Communication
(iii) Leadership (iv) Motivation
Brief description of these four activities is as follows:
(i) Supervision:
It refers to monitor the progress of routine work of ones subordinates and guiding them properly. Supervision is an
important element of the directing function of management. Supervision has an important feature that face to face
contact between supervisor and his subordinate is a must,
(ii) Communication:
It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him understand them.
A manager has to continuously tell his subordinates about what to do, how to do, and when to do various things.
Also, it is very essential to know their reactions. To do all this it becomes essential to develop effective communication
facilities. Communication by developing mutual understanding inculcates a sense of cooperation which builds an
environment of coordination in the organisation.
(iii) Leadership:
It refers to influencing others in such a manner to make them do work what the leader wants them to do. Leadership
plays an important role in directing. Only through this quality, a manager can inculcate trust and zeal among his
subordinates.
(iv) Motivation:
It refers to that process which excites people to work for attainment of desired objective. Among the various factors of
production, it is only the human factor which is dynamic and provides mobility to other physical resources. If human
resource goes static then other resources automatically turn immobile.

Thus, it becomes essential to motivate human resource to keep them dynamic, aware and eager to perform their duty.
Both monetary and non-monetary incentives are given to employees for motivation.
(5) Controlling:
It refers to bringing the actual results closer to the desired results.
Under this, the manager monitors whether the jobs are being performed in accordance with the set plans or not. He also
checks whether the quality and quantity of job performed is in alignment with the pre-determined standards/parameters
or not.
Deviations are then checked for by matching actual performance with predetermined standards. After this corrective
action is taken for negative deviations so that the difference between actual result and desired results can be minimised.
Thus, with the enforcement of controlling process all the bottlenecks coming in the way of work-progress are removed
and efforts of all the people start approaching in the desired direction, in the form of conclusion, controlling process has
five main steps:
(i) Setting performance standards
(ii) Measurement of actual performance
(iii) Comparison of actual performance with standards
(iv) Analysing deviations
(v) Taking corrective action.