Planning involves determining and allocating the required resources to the different processes expected to meet the goals and objectives of the organization. In this regard, planning relates and is similar to the organizing function since they both deal with the available organization resources. Organizing deals with the scheduling of the allocated resources, while planning deals with the allocation of the resources.
The leadership function relates to both the planning and organizing functions because leadership deals with decision-making and during the allocation and scheduling of resources and processes a key function is the decision-making process. Decisions have to be made with regards to how the available resources are allocated to the different tasks. Similarly, decisions have to be made on how the tasks and resources are categorized in order to achieve the planning and organizing functions respectively.
Lastly, control relates to the planning, organizing, and leadership function because it evaluates all the functions to determine whether the objectives of all the functions are met. Control also serves as the troubleshooting function of the entire process because it discovers the problems and provides solutions facing the process chain, which is similar to the leadership function of problem-solving and decision-making.
The four management functions are as follows: 1) Planning, 2) Organizing, 3) Leading, and 4) Controlling.
1) Planning—Planning includes the steps necessary to be taken to formulate and create a concrete plan aimed towards goal that benefits the organization overall.
2) Organizing—Organizing includes the steps necessary to be taken to accumulate and distribute company resources in accordance with the aforementioned plan. This would also include the delegation of tasks to employees.
3) Leading—Leading includes the interpersonal interactions necessary to form solid relationships between manager and employee. This includes communication, motivational speech, encouragement, critiques, and so on.
4) Controlling—Controlling involves a comparison between the goals that were set and the actual results in relation to those goals. If the goals are not met, changes may be needed to be made within the company. These include promotions, demotions, firings, and so on.
Every one of these functions is related due to the fact that each function is geared toward the creation and completion of company goals. Managers have a responsibility to oversee employee behavior in order to ensure that the company is always progressing in a linear manner. Each function is reliant upon the other functions as a means to produce and maintain positive behavior within the company. Managers must make plans, organize according to these plans, lead the company towards the completion of these plans, then control the workplace environment in accordance with performance. Each function is interrelated.
The total work of management is often divided in four broad functions. These are:
- Planning and/or decision making
- Organizing, including staffing
These four functions are very distinct but closely interrelated. These functions are generally carried out in the sequence of steps presented above. At the same time these are iterative steps. That is, after a manager has completed one step and moved to another, he or she may revisit an earlier step in response to the developments occurring in subsequent steps. Also management is an ongoing process, and therefore these steps are performed in a repetitive cycle in a spiralling pattern.
In the planning and decision making step they determine the objectives they need to pursue in managing the work under their jurisdiction, and how this work needs to be performed to achieve this objectives.
The objectives and plans worked out in step one have direct bearing on the next step,that is organizing. In this the managers decide on the organization structure of people who will carry out the plans worked out in step. Obviously this organization structure including the total sizes and nature of duties performed by individuals will depend very much on the nature of work to be performed as dictated by planning. The staffing of people including their selection and training must take into account the nature of the duties to be performed by them Thus the organizing is closely related to planning.
Organizing function, in turn is closely related to both planning and organizing. The motivation and leading of the people aims to achieve at the objective set, and implement plans prepared in step one. Also the exact nature of motivating and leading actions is heavily dependent on type of people working in the organization and their relationships with others in the organization.
The controlling function which includes monitoring the actual performance, comparing it with plans, and taking corrective action, ties down all the three previous steps. The performance is monitored in terms of objectives and plans set in step one also it is compared with these to determine if any corrective action is required. The most effective way of monitoring and control takes into account the responsibilities of individual employees as per the organization structure. Further, the control action including the reward and punishment meted out to individuals in response to assessment of their performance is a very important ingredient of motivating and leading function. Also the the monitoring and comparison of actual performance against plans and objectives, itself is an important tool for motivation. Finally, the controlling function forms the starting point for the subsequent cycles of the four management functions.