Basic Functions of Management

• In 1916, Henry Fayol introduced the

four basic functions of management.

1. Planning
2. Organizing
3. Leading and Motivating
4. Controlling
 1. Planning
• Planning involves the establishment
of goals and how to achieve them.

• A mission statement is formulated

that clarifies the objectives of an
organization.
 Examples of Planning
• Let’s suppose, McDonald's wants to open
a new franchise.
• Information gathering.
• Evaluation of a certain course of action.
• Evaluation of all the limitations.
• Execution of plan.
 Types of Plans
• The plans are further divided into
four main categories.

1. Strategic Plans
2. Tactical Plans
3. Operational Plans
4. Contingency Plans
 Strategic Plan
• Broad guiding principle for the key
policy setting.
• Contrived to accomplish long-term
goals and objectives.
• Devised by the top management of
an organization.
 Tactical Plan
• Intermediate-scope plans to execute
strategic plans.
• Tactical plans can be modified
rather easily.
• Can be implemented for 1-3 years.
• Designed by the mid-level
managers.
 Operational Plan
• Formulated to execute the tactical
plans.
• Its main objective’s how to achieve
certain goals.
• Time span is a year or less.
 Contingency Plan
• Renders a summary of alternative
plans, in case the main plans get
disturbed or become non-effective.

• Applied along with strategic,

tactical and operational plans.
 2. Organizing
• Organizing is to put things into an
ordered and well structured way.

• It is done by identifying and

grouping of individuals to complete
certain tasks.
Organizing As a Process Involves
• Identification of activities.
• Classification of grouping of
activities.
• Assignment of tasks.
• Delegation of authority and creation
of responsibility.
 Examples of Organizing
• Mark and Tyler is a new Insurance
Company.
• After devising a key strategic plan
they want to get organized.
• The procedure of organization’s
done by assigning tasks to different
employees.
• Like employing some staff for book-
keeping, customer care etc.
 3. Leading and Motivating
• A process in which managers guide
and instruct their subordinates.

• Motivation is rendered through

diverse ways to employees, so that
they work more efficiently to
achieve predetermined goals.
 Basic Elements of Leading and Motivating
• Supervision
• Motivation
• Leadership
• Communication
 Examples of Leading and
Motivating
• The CEO of Google provides
leadership by assisting his/her
employees personally.

• Google offers on-site fitness centers

and free meals to the staff in order to
keep them motivated.
 4. Controlling
• It involves comparing actual
performance to expected performance.

• The managers evaluates how well

the organization is achieving its goals.

• Takes corrective action to improve

performance.
 Controlling As a Process
• Establishing standards to
measure performance.
• Measuring actual performance.
• Comparing performance with
the standards.
• Taking corrective action.
 Examples of Controlling
• Suppose Starbucks establishes a goal of
increasing their overall profit by 9%.

• If the profit gets increased up to 4% in

the next 4 months, then management
might choose to follow the current plan.

• Otherwise, corrective actions will be

taken to put things on the right track.
Thank You So Much