The Four Principal Functions of Management:
Planning, Organizing, Leading, and Controlling
24 September 2011
Tristan L. Davison
All new or old organizations whether small or big need to run smoothly and achieve the goals and objectives. Organizations can develop and implement their own management concepts. Basically, there are only four management principles that would allow any organization to control the tactically planned and set decisions. The four principles of management are used, just to have a controlled plan over the preventive measure. These four principal functions of management are: planning, organizing, leading, and controlling.
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(Kinicki & Williams, 2006)
“Formal planning seems valuable for strategic decision making because so much money is spent on it. Some of the companies that use formal planning believe that it improves profits and growth. But some companies do not agree (Armstrong, 1982).” Planning is believed to be the central function of management because it controls the outline for the other functions to follow. Planning means specifying goals for organizational performance and determining on the tasks and the use of all resources needed to achieve them. Planning includes these four sub-elements:
* Assessing environmental forces and organizational resources
* Forming a set of organizational goals
* Evolving strategies and plans to achieve the stated goals
* Devising a decision-making process
“Planning adherents have long asserted that formal strategic planning provides benefits that ultimately produce economic value, generates information, it ensures a thorough consideration of all feasible options, it forces the firm to evaluate its environment, it stimulates new ideas, it increases motivation and commitment, it enhances internal communications and interaction, and it has symbolic value to stakeholders (Powell, 1992).”
“Organizing is defined as arranging tasks, people and other resources to accomplish the work.”
(Kinicki & Williams, 2006)
“An organizing vision is a focal community idea for the application of information technology in organizations (Swanson & Ramiller, 1997).” The organizing principle function of management influences many levels of a business’s ventures. The organizing principle function of management directs the manner in which people within the organization will interact, who will reports to whom, the organizational chart, and the lines of authority. All of these are facets of personnel management and organizations that fall within the performance of the organizing principle function of management.
Furthermore, under the organizing principle function of management falls the financial planning and budgeting considerations. Management and personnel should be trained in the budgeting process for the organizations they are employed with. They need to comprehend the spending and budgeting urgencies of the organization in order to best understand how to distribute all of the company resources to ensure maximum profits.
“Imagine that an organizing vision is something like a hot-air balloon, given lift by what is said among those interacting to interpret it. When interpretation waxes, the organizing vision rises for more to see and consider; when interpretation wanes, it settles earthward and out of sight. An organizing vision, however, owes its journey not merely to "hot air," or talk. Rather, a basket of material processes invention, commercial exchange, adoption, implementation- are carried along by the rising and drifting organizing vision. In turn, these activities fuel the rhetorical fires...