Define management; functions of management

Management

Management is the process of planning, organizing, staffing, directing and controlling the human, financial and physical resources of an organization so that its goals are achieved efficiently and effectively. In short, it is "getting things done through people".

Functions of management

1. Planning: Deciding in advance what to do, how, when and by whom. It involves setting objectives, forecasting, and making policies, procedures and budgets. Example: NEA prepares a plan to add 10,000 MW of generation.
2. Organizing: Arranging the work, grouping activities into departments, assigning authority and responsibility, and establishing relationships. Output is the organization structure.
3. Staffing: Recruiting, selecting, training, appraising and compensating the right people for the right job.
4. Directing (leading): Guiding, supervising, motivating and communicating with employees so that they work willingly towards the goals.
5. Coordinating: Harmonising the efforts of different departments (sometimes treated as the essence of management).
6. Controlling: Setting standards, measuring actual performance, comparing, and correcting deviations. Example: a bank checks monthly targets against actuals and takes action.

Planning -> Organizing -> Staffing -> Directing -> Controlling
    ^                                                  |
    +-------------------- Feedback --------------------+

The functions are interrelated and continuous. Controlling gives feedback for the next planning cycle, so management works as a cycle. Some authors (Koontz and O'Donnell) list five functions: planning, organizing, staffing, directing and controlling; Fayol's list is planning, organizing, commanding, coordinating and controlling.