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What Are The Basic Functions Of Management?

A manager is an individual who plans, then organizes, leads directs, and controls management operations. And their people are the functions of management. Management is a process to achieve organizational goals and objectives and put the organization’s objectives into action. This process is identified in a set of functions performed by the managers to achieve the targeted goals to maximize profit and increase the market share. The managers of an organization perform fundamental functions. 

Basic Functions Of Management:


The organization must make a concrete plan before starting any business or executing any project to increase the efficiency of the business. 

The benefits of planning are: – 

  • Planning encourages managers for creativity and innovation. 
  • A good plan helps motivate both managers and employees to work harder for financial incentives. 
  • It facilitates decision-making, as the managers make various plans and evaluate each plan to choose the best strategy. 

 Types of plans: – 

  1. Objectives 
  2. Procedure 
  3. Strategies 
  4. Programs 
  5. Rules 
  6. Budgets  

Those mentioned above and every plan are based on the forecasting business activity for better execution and performance. 


Once the planning is done, the next function is organizing. Organizing is set to be the backbone of management. Under the organizing function, the work is divided and assigned to people. 

Why is organizing important? 

  • It increases the efficiency of the management.
  • For better coordination and communication in the different departments. 
  • It helps to increase in capacity of management to undertake more activities.
  • It ensures there should be optimum use of available resources.
  • By allocation of work among the people provides specialization in every department. 

There are two types of organization formal and informal.


The next function of management is staffing after functions of planning and organizing. For a good organizational structure, it is important to fill the jobs with the right people, and filling the right people at the right place is called staffing. 

Why is staffing necessary? 

  • It helps in finding talented and competent workers. 
  • Staffing increases productivity. 
  • Regular promotions for the employees help to maintain harmony in the organization. 
  • Training programs boost the morale of the employees. 
  • Surplus of manpower or shortage of manpower depends upon the planning of manpower. 

The steps of staffing include manpower planning, recruitment, selection, placement, training and development, promotions, and compensation. 


Directing initiates work through orders, instructions, influence, guidance, supervision, leading and motivating the employees.  

The manager must give direction to his subordinates to ensure plans and policies are implemented, and desired results can be achieved. 

Directing elements: – 

  • Supervision 
  • Motivation 
  • Leadership 
  • Communication 

Advantages of Directing: 

  • It initiates action for productive outputs. 
  • Direction creates a sound work environment where people work to their maximum potential. 
  • As it relates to human behavior and psychology, it helps employees satisfy their behavior. 
  • It improves the skills and competence of employees. 
  • This increases employees understanding of mutual interdependence 
  • It facilitates control, change, and growth of the employees. 


It bridges the gap between actual performance and expected performance of the employees. There has to be an internal control system in every business activity that can be further studied in bachelor of business courses. 

 Significant of the good control system are: – 

  • It reduces the chances of repetitive mistakes for future actions 
  • It helps in making the right decisions 
  • Employees are more disciplined as their supervisors observe them 
  • Control of one department helps other departments to perform better. 

Controlling is a process of setting standards, measuring performance, comparing actual and standard performance, and taking remedial actions. 

Relation between Planning and Controlling: 

  • The Control function of management is always based on the function of planning. 
  • Both planning and controlling are looking ahead. 
  • Both planning and controlling are looking backward. 
  • Planning and controlling follow the same direction. 
  • Planning without controlling has no meaning. 
  • Control without planning has no sight. 


Coordination is the efforts of a group of people to take action in unity to achieve their common goals. It is inseparable to the functions as: – 

Coordination through planning: –

Coordination between two plans. For example, sales budget and purchase budget. 

Coordination through organizing: –

Assigning work to the employees in each department ultimately brings coordination between the departments. 

Coordination through staffing: –

Choosing the right person at the right place affects the coordination of the position. 

Coordination through directing: –

The orders and instructions are only performed when there is coordination between subordinates and superiors. 

Coordination through controlling: –

Coordination between actual and standard performance.  

About functions of management: 

All the functions, i.e., planning, organizing, staffing, directing, and controlling, are very important to run any business organization. This can only be achieved when the one who knows how the business happens. These are the functions that are in a process. The process can only be continued once the previous steps are completed. As the functions are processed every function itself is a process.  

Every function is performed with utmost care and with detailed understanding. The understanding of every function depends upon how you approach it. The point of view matters when it comes to performance. Every such employee should have a point of view, and they must have some experience of practical projects. 

These are basic functions that the different experts further elaborate on. Management studies and strategies can understand it.  Every successful manager holds a high level of confidentiality, integrity, and strategic management skills. 


Business management and its basic functions are an important part of the organization, and functions play a significant role in business activities.  

All the functions are specialized with their elements and have specific places to run them systematically. 

Through online management courses, people can be more focused on the approach, thought process, clarity, basic requirement, skills, and competency required by an entity.  

I'm Bipasha Zaman, a professional author with vast experience in the research field. Presently, I work for many sites. Also, I have a strong passion for writing creative blogs.


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