NATURE AND SIGNIFICANCE OF MANAGEMENT — OCM STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceOCMNATURE AND SIGNIFICANCE OF MANAGEMENT5 Marks
Question
State and explain in detail the various functions of management.
✓
Answer
Planning,
Organizing,
Staffing,
Directing and
Controlling are the five major functions of management.
$1.$ Planning:
It is said that ‘even God cannot change the past, but man can change the future through proper 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.
Planning consists of deciding well in advance as what work has to be done, who will do what, when, how, to what extent and when will the work be finished for achieving predetermined objectives. Hence, planning is considered as thinking about the future while remaining in the present.
Planning is extremely important to reduce risk and uncertainties that may arise in future.
Planning helps to take care of all the business activities in a systematic manner. This helps to accomplish business goals easily.
Planning helps in systematic selection of the best alternative for the business. Hence, it is said that planning is a function of ‘selection/preference’.
Planning is also a base for other managerial functions such as organizing, staffing, co-coordinating and controlling.
$2.$ Organizing:
Organizing or organization is a structure for assigning authority and responsibility among individuals for achieving business objectives.
Business objectives, policy, programmes, etc. are decided through planning whereas organizing is done for executing the plans.
Under organizing, various sections and groups of people are allotted various business activities so that the objectives can be fulfilled.
Organization helps in distribution of authority and responsibility among these sections and groups. The sections and groups get clear cut idea about their roles and responsibility and the structure of the organization. The structure « of organization decides on matters like who will supervise, who will have authority and responsibility of work, inter-relationship among individuals, etc.
Planning is the brain of a business unit while organization is its physical structure.
The function of a brain in the human body is to take the intellectual decision
while its implementation is done by various organs of the body. Similarly, the function of planning in a business unit is to take intellectual decisions whereas, implementation of these decisions, distribution of work, delegation of authority and responsibility among the employees of various departments is taken care by organizing.
$3.$ Staffing:
It is said that “Employees are arms and legs $($limbs$)$ of unit.”
According to Dr. George Terry, “Staffing is concerned with availing and maintaining satisfactory manpower.”
Every business organization requires staff. Hence, staffing is a very important function of management. An organization without staff is like a mere skeleton. Activities of all businesses depend on their staff.
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.
Staffing also monitors the output of work of each employee. It also listens to the problems of the employees. This helps in maintaining the enthusiasm and zeal of employees. Enthusiasm for work and comfortable and encouraging work environment leads to increase in productivity and efficiency of the organization.
Today staffing also includes man-power planning, human resource development, evaluation of work, job analysis, etc. It is a highly known fact that a satisfied staff is an invaluable asset of the business.
$4.$ Directing:
The management function of guiding and to supervising the employees for accomplishing business objectives is called directing.
Directing is extremely important to supervise employees of an organization effectively in order to achieve the business objectives. All management functions are worthless without direction.
In a business unit, planning is done after defining objectives. Then an ideal organization structure is formed and raw material, machineries are purchased and staff is appointed. In spite of all these activities, the business can fail to operate if proper direction is not given to the employees or workers.
The function of directing includes various activities like directing the subordinates, supervising them, giving them orders and instructions, allocating the work, motivating the workers, providing leadership, etc.
Direction is a continuous process and so it is required at every level of management.
$5.$ 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.
As per traditional thought process, controlling refers to putting restriction on the activities of employees, to have a strict approach, punishing or fining the employees in case of mistake, transferring them or withholding their promotion and so on. But this is a negative approach of controlling.
In modern times, controlling is a oositive concept, it is done as a corrective activity because the function of controlling is not to restrict the activities but to direct them in the right direction.
It is important to see that the business activities are done as per the planning. Controlling sees to it that the activities take place as per plan so that business objectives are fulfilled.
The function of controlling is also to see that mistakes made in past are not repeated in future.
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