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Unit 6: Managerial Process and its Importance

6.6 Elements of Management Process Notes

1. Planning: Planning is the primary function of management. It involves determination of a course of
action to achieve desired results/objectives. Planning is the starting point of management process
and all other functions of management are related to and dependent on planning function. Planning
is the key to success, stability and prosperity in business. It acts as a tool for solving the problems
of a business unit. Planning plays a pivotal role in business management It helps to visualize the
future problems and keeps management ready with possible solutions.
2. Organising: Organising is next to planning. It means to bring the resources (men, materials,
machines, etc.) together and use them properly for achieving the objectives. Organisation is a
process as well as it is a structure. Organising means arranging ways and means for the execution
of a business plan. It provides suitable administrative structure and facilitates execution of
proposed plan. Organising involves different aspects such as departmentation, span of control
delegation of authority, establishment of superior-subordinate relationship and provision of
mechanism for co-ordination of various business activities.
3. Staffing: Staffing refers to manpower required for the execution of a business plan. Staffing, as
managerial function, involves recruitment, selection, appraisal, remuneration and development
of managerial personnel. The need of staffing arises in the initial period and also from time to
time for replacement and also along with the expansion and diversification of business activities.
Every business unit needs efficient, stable and cooperative staff for the management of business
activities. Manpower is the most important asset of a business unit. In many organisations,
manpower planning and development activities are entrusted to personnel manager or HRD
manager. 'Right man for the right job' is the basic principle in staffing.
4. Directing (Leading): Directing as a managerial function, deals with guiding and instructing
people to do the work in the right manner. Directing/leading is the responsibility of managers
at all levels. They have to work as leaders of their subordinates. Clear plans and sound
organisation set the stage but it requires a manager to direct and lead his men for achieving the
objectives. Directing function is quite comprehensive. It involves Directing as well as raising
the morale of subordinates. It also involves communicating, leading and motivating. Leadership
is essential on the part of managers for achieving organisational objectives.
5. Coordinating: Effective coordination and also integration of activities of different departments
are essential for orderly working of an Organisation. This suggests the importance of coordinating
as management function. A manager must coordinate the work for which he is accountable.
Co-ordination is rightly treated as the essence of management. It may be treated as an
independent function or as a part of organisms function. Coordination is essential at all levels
of management. It gives one clear-cut direction to the activities of individuals and departments.
It also avoids misdirection and wastages and brings unity of action in the Organisation. Co-
ordination will not come automatically or on its own Special efforts are necessary on the part
of managers for achieving such coordination.
6. Controlling: Controlling is an important function of management. It is necessary in the case of
individuals and departments so as to avoid wrong actions and activities. Controlling involves
three broad aspects: (a) establishing standards of performance, (b) measuring work in progress
and interpreting results achieved, and (c) taking corrective actions, if required. Business plans
do not give positive results automatically. Managers have to exercise effective control in order
to bring success to a business plan. Control is closely linked with other managerial functions.
It is rightly treated as the soul of management process. It is true that without planning there
will be nothing to control It is equally true that without control planning will be only an academic
exercise Controlling is a continuous activity of a supervisory nature.
7. Motivating: Motivating is one managerial function in which a manager motivates his men to
give their best to the Organisation. It means to encourage people to take more interest and
initiative in the work assigned. Organisations prosper when the employees are motivated through

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