NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question

There are five major management functions. They are:
1. Planning:

• The process of selecting facts for obtaining the desired results and establishing inter-relationship between them, as well as observing necessary activities for forecasting and anticipating the future of business is called planning.
• Planning is the first step of management.

2. Organizing:

• Organizing or organization is a structure for assigning authority and responsibility among individuals for achieving business objectives.
• Under organizing, various sections and groups of people are allotted various ‘ business activities so that the objectives can be fulfilled.

3. Staffing:

• The function of staffing is to recruit employees for the right position, at the right time, in the right number, with the right qualification. It also includes selection, training, transfer, promotion, dismissal, retirement and welfare activities of employees.
• This function is carried out by the Human Resource Department of the business organization.

4. Directing:
The management function of guiding and to supervising the employees for accomplishing business objectives is called directing.

5. Controlling:

• The function of controlling maintains the balance among efforts, result, resources and objectives. Controlling is the last function of management.
• The function of controlling is to make sure that the business activities are conducted as planned.